Li & Fung Signs Seven Deals
Blue-chip consumer-goods trading firm Li & Fung Ltd. said Thursday it signed seven deals, including three acquisitions totaling around US$140 million, in the past few months.
The company, which sources products for U.S. clients such as Wal-Mart Stores Inc. and Abercrombie & Fitch Co., has been on the lookout for acquisition targets in the U.S., Europe and Hong Kong as part of its plans to expand beyond its core sourcing operations and into higher-margin businesses such as retailing and brand licensing.
"The deals will further solidify our market share in their respective areas and will contribute positively to our bottom line in the long run," Li & Fung President Bruce Rockowitz said in a statement.
"Our management structure also has ample scale and resources to support these new additions and we expect more deals to come."
The company said in a statement it bought Hong Kong-based Jackel Group, which handles cosmetics packaging, fragrances and other personal-care products, in May. Li & Fung said the acquisition will complement its existing health, beauty and cosmetics business.
In June, Li & Fung acquired Hong Kong-based jeanswear maker HTP Group in a bid to strengthen its capabilities in denim sourcing. That same month, Li & Fung bought all the assets of Cipriani Accessories Inc. and affiliate The Max Leather Group Inc., which are design and distribute men's and women's accessories in the U.S., Mexico and Canada.
Li & Fung said it will fund the deals with internal resources.
The company has also signed four licensing deals, including a partnership with a U.S. celebrity stylist to produce women's apparel and the formation of a new company with Star Branding, of which Tommy and Andy Hilfiger are partners.
The deals come after Li & Fung signed a sourcing agreement with Wal-Mart in January.
In October, Li & Fung bought nearly all the assets of U.S. children's wholesale apparel designer and marketer Wear Me Apparel LLC for about US$401.8 million, its biggest acquisition since 2001.
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