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Li & Fung acquires global sourcing operations of Tommy Hilfiger
12 Feb '07
3 min read
Li & Fung Limited and Tommy Hilfiger announced that a wholly-owned subsidiary of Li & Fung has entered into an Asset Purchase Agreement to acquire the global sourcing operations of designer Tommy Hilfiger.
Mr. William Fung, Group Managing Director of Li & Fung Limited, said, "Li & Fung has been on the lookout for acquisition opportunities that would further enhance its global diversification and maintain a much more balanced geographical mix of business. Our share placement executed last year has augmented our capacity for acquisitions and positioned us well to capture this opportunity.”
The cash consideration for the purchase is approximately US$247.8 million (HK$1,933 million) and will be financed by Li & Fung's internal cash reserves. The cash consideration will be payable on completion of the acquisition.
Tommy Hilfiger is one of the largest and most globally developed designer brands in the world with of course a very prominent position in the American market but notably also a very significant European business.
It has attained a unique positioning as a premium American lifestyle brand that brings a fresh perspective to traditional, all-American styling. Since its inception as a menswear line, it has successfully developed across a growing number of product categories including womenswear, jeanswear and childrenswear.
Its existing buying offices, which will be substantially integrated into the Li & Fung organization, are located in Hong Kong, Taiwan, India, Bangladesh and Sri Lanka. The sourcing volume and unaudited adjusted earnings after tax attributable to the sourcing operations of Tommy Hilfiger for the year ended 31 March 2006 were approximately US$703 million (HK$5,483 million) and US$31 million (HK$242 million) respectively.
Mr. William Fung, Group Managing Director of Li & Fung Limited, said, "Li & Fung has been on the lookout for acquisition opportunities that would further enhance its global diversification and maintain a much more balanced geographical mix of business. Our share placement executed last year has augmented our capacity for acquisitions and positioned us well to capture this opportunity.”
The cash consideration for the purchase is approximately US$247.8 million (HK$1,933 million) and will be financed by Li & Fung's internal cash reserves. The cash consideration will be payable on completion of the acquisition.
Tommy Hilfiger is one of the largest and most globally developed designer brands in the world with of course a very prominent position in the American market but notably also a very significant European business.
It has attained a unique positioning as a premium American lifestyle brand that brings a fresh perspective to traditional, all-American styling. Since its inception as a menswear line, it has successfully developed across a growing number of product categories including womenswear, jeanswear and childrenswear.
Its existing buying offices, which will be substantially integrated into the Li & Fung organization, are located in Hong Kong, Taiwan, India, Bangladesh and Sri Lanka. The sourcing volume and unaudited adjusted earnings after tax attributable to the sourcing operations of Tommy Hilfiger for the year ended 31 March 2006 were approximately US$703 million (HK$5,483 million) and US$31 million (HK$242 million) respectively.
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