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Li & Fung sees strongest growth in H1

16 Aug '07

4 min read

"The acquisition will also add strong expertise and capabilities in product design and development in both footwear and beauty businesses, and will double our Health, Beauty and Cosmetics business overnight.”

For year ended 31 January 2007, PB Group's net sales were approximately GBP189 million. Unaudited profit before tax was approximately GBP9.3 million.

In addition, the Group announced that it has entered into an agreement to acquire substantially all of the assets of Pacific Alliance, LLC, Regatta USA LLC, and all of their related companies (collectively “Regatta”).

The purchase consideration is approximately US$148 million. The consideration will be satisfied in cash and shares.

Regatta is a leading apparel and brand management company offering proprietary brands and private label products. It designs, sources, and markets such prominent apparel brands as Daisy Fuentes, Simply Vera by Vera Wang, Nicole Miller and other proprietary label brands for major retailers. The company serves such retailers as Kohl's, Wal-Mart, J.C. Penney and Charming Shoppes.

Mr. Bruce Rockowitz said, “We have been on the lookout for opportunities to expand the proprietary brand business for some time. This transaction will help establish Li & Fung as the leader in design and marketing of proprietary brands."

"Regatta has become the “go to” destination for people seeking to license their name, and for retailers seeking proprietary brands. It will help further expand our in-house brand management and marketing capabilities to enhance existing and future proprietary brands and private label product offerings.”

For the year ended 31 December 2006, Regatta's net sales were approximately US$299 million. Unaudited profit before tax was approximately US$27.9 million.

Going forward, Mr. William Fung said, “Our turnover growth will continue to reflect the strong growth momentum driven by organic business expansion and our acquisitions. We have experienced continued success in adding new customers as well as expanding our existing customer base."

"We believe this momentum will be supported by the continuing trend to outsource in US and Europe and will place us in strong position to achieve our current Three-Year Plan target of US$10 billion as well as setting the stage for the next Three-Year Plan, to be announced in March 2008.”

Li & Fung Limited

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