Vancl acquires online apparel retailer Crucco

Beijing-based Vancl Technology Co, an online clothing retailer,

said on Monday it will acquire Crucco, a business-to-customer online apparel retailer, with cash and through a share-swap deal. Total value of the transaction remains unveiled.

Crucco's valuation is at about 10 million yuan (1.6 million dollars), reported ‘China Daily’ on Tuesday. Chen Nian, founder and CEO of Vancl, said that the deal was based on the recognition of the work done by Crucco's CEO Xu Xiaohui and his team, as reported by main Chinese media.

Crucco will become Vancl's first sub-brand, and will continue to be operated and managed by Crucco's team. Chen also said that Vancl will seek more brand acquisitions this year.

Established by Xu Xiaohui, the former deputy president of Vancl, Crucco's annual sales reached more than 10 million yuan since it started operations two years ago.

Xiaohui said last December that the company was seeking strategic financing or whole acquisition due to the lack of financial support.

The transaction has been confirmed by one of Crucco’s senior managers, reported ´Morning Whistle’. However, Vancl has preferred not to make an official comment on the deal yet although a new brand “Crucco@Vancl” can already been spotted on Vancl.com. Crucco.com was launched in April 2011 with young consumers as its target market.