Li & Fung acquires global sourcing operations of Tommy Hilfiger
A wholly-owned subsidiary of Hong Kong-based Li & Fung Limited has entered into an asset purchase agreement to acquire the global sourcing operations of designer Tommy Hilfiger.
Since its inception as a menswear line, Tommy Hilfiger has 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 organisation, are located in
The cash consideration for the purchase is approximately $247.8 million and will be financed by Li & Fung’s internal cash reserves.
Commenting on the agreement group managing director of Li & Fung, William Fung, 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.”
Li & Fung is a buying agency for consumer goods, managing the supply chain for retailers and brands worldwide. The group services its customers globally through a sourcing network of over 70 offices in 40 countries and territories.
