Li & Fung with important acquisition

Li & Fung with important acquisition

On January 15, 2013 acquired Hong Kong based Li & Fung Limited (a world leader in consumer goods design, development, sourcing and distribution) the British Lornamead (adding value to personal care brands)

Lornamead owns and manages a portfolio of traditional and heritage, American, German and British personal care brands, such as Finesse, CD, Aqua Net, Yardley and Lypsyl, across hair, body, skin and care product categories. Operating platforms exist in the U.S., Germany and Great Britain and sells over 20 brands in over 60 countries to a variety of large retailers, including CVS and Walgreens in America, Rossmann and DM in Germany as well as Boots Tesco and Sainsbury in Great Britain. In its fiscal year (per end of March 2012) Lornamead had net sales of around USD 155 million and the acquisition price is earmarked with approximately USD 190 million. Li & Fung intends to further strengthen the Groups growing global businesses in health, beauty and cosmetics and sees increasing opportunities in the beauty business across Asia.

Not part of the transaction is cash on Lornamead balance sheet and the Yardley business outside the U.S. (sold in a separate transaction prior to this deal with Li & Fung) as well as certain other operations that are retained by Lornamead shareholders.

At the same it is noteworthy that Li & Fung has recently a profit warning because of the restructuration of its American businesses resulting partially from the new more limited contract on behalf of services to Wal-Mart (see TextileFuture News September 25, 2012).   

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