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Roly Group buyout strengthens LF Asia's brands portfolio
20 Jan '12
2 min read
Hong Kong-based Li & Fung Limited announced it has acquired the children apparel and toys businesses in Greater China from The Roly Group (“the Seller”) in 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 children apparel and toys businesses in Greater China generated net sales of approximately US$70 million in financial year 2011. Total purchase consideration for this acquisition amounts to approximately US$41 million.
This transaction covers the wholesaling, retailing and sourcing of children apparel and toys 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.
Mr. Jason Rabin, President of LF Asia in charge of Hard & Soft Goods, said, “This acquisition dramatically strengthens LF Asia's brands and licensing portfolio.” He added, “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.”
Mr. Bruce Rockowitz, Group President and CEO of Li & Fung Limited, said, “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." He continued, “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.”
In addition, Li & Fung has announced that LF Asia has entered into an agreement with LiFung Kids (Holdings) Limited, a subsidiary of Li & Fung (1937) Limited, to divest the apparel retailing business acquired from The Roly Group to LiFung Kids at the initial consideration of approximately US$17.8 million, subject to upward or downward adjustment with reference to the Net Tangible Assets, provided that the total consideration will not exceed US$26.7 million. Details of the agreement are available on the announcement posted on the Hong Kong Stock Exchange's website.
Li & Fung Limited, the Hong Kong-headquartered multinational group, is recognized as the world's leader in consumer goods design, development, sourcing and distribution.
The acquired children apparel and toys businesses in Greater China generated net sales of approximately US$70 million in financial year 2011. Total purchase consideration for this acquisition amounts to approximately US$41 million.
This transaction covers the wholesaling, retailing and sourcing of children apparel and toys 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.
Mr. Jason Rabin, President of LF Asia in charge of Hard & Soft Goods, said, “This acquisition dramatically strengthens LF Asia's brands and licensing portfolio.” He added, “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.”
Mr. Bruce Rockowitz, Group President and CEO of Li & Fung Limited, said, “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." He continued, “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.”
In addition, Li & Fung has announced that LF Asia has entered into an agreement with LiFung Kids (Holdings) Limited, a subsidiary of Li & Fung (1937) Limited, to divest the apparel retailing business acquired from The Roly Group to LiFung Kids at the initial consideration of approximately US$17.8 million, subject to upward or downward adjustment with reference to the Net Tangible Assets, provided that the total consideration will not exceed US$26.7 million. Details of the agreement are available on the announcement posted on the Hong Kong Stock Exchange's website.
Li & Fung Limited, the Hong Kong-headquartered multinational group, is recognized as the world's leader in consumer goods design, development, sourcing and distribution.
Li & Fung Limited
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