Hong Kong-based Li & Fung Limited has acquired children, apparel and toys businesses in Greater China from The Roly Group, effective September 2011. This is Li & Fung’s first acquisition for LF Asia since the expansion of its distribution business to Asia last year.
The acquired businesses generated net sales of approximately $70 million in 2011, with a total purchase price was $41 million.
This transaction covers the wholesaling, retailing and sourcing businesses of the seller in the Chinese Mainland, Hong Kong and Macau. The portfolio of international brand licenses includes Disney (Mickey and Winnie the Pooh), Elle and Sesame Street.
"This acquisition dramatically strengthens LF Asia’s brands and licensing portfolio,” says Jason Rabin, president of LF Asia in charge of hard and soft goods. “Leveraging the global presence of Li & Fung in all areas, from design and licensing to sourcing and logistics, this will enable LF Asia to expand its business into new markets and product categories, including the children’s marketplace in China.”
"We are very pleased with this first acquisition for LF Asia as it represents a significant stride we have made in achieving our goal of expanding the distribution business," says Bruce Rockowitz, group president and chief executive officer of Li & Fung Limited. "This is a very strong platform. Not only does it help LF Asia further penetrate the great potential of the Chinese market, but also shows that Li & Fung is a unique company able to take brands from the U.S. and Europe and distribute them all over the world."