In the future to buy CK clothing, you have to buy from the hands of Hong Kong Li & Fung. Through an acquisition, Li & Fung will CK and other clothing brand agency income in the bag. On October 19, Hong Kong-based Li & Fung announced that it will acquire most of the assets of Wear Me Apparel in the United States for a total consideration of no more than $ 401.8 million. This is Li & Fung's largest acquisition in a decade. Prior to 15 years, Li & Fung merger of nearly 40 companies. Wear Me Apparel mainly deals in young men's apparels and children's apparel in the United States and manages a portfolio of franchises for domestic brands, monopoly brands, private labels and cartoon characters. In addition to apparel design, procurement, franchising, marketing and sales of children's wear business, the agency of the other 10 key brands, Calvin Klein, Ecko, Hurley, US Polo Association and Disney, will also be transferred to Lee Feng name management. DBS Vickers, a Hong Kong brokerage firm, rates the deal as "an ideal deal". In 2008, Wear Me Apparel garments $ 700 million in revenue and $ 12 million in after-tax profits. There is currently no negative equity. The agency believes the acquisition will help the Li & Fung Group in its brand portfolio, helping to widen product categories and consolidate US domestic operations. Bank of America-Merrill Lynch expects the transaction will expand Li & Fung's U.S. operations by about 40%, equivalent to 700 million U.S. dollars. Prior to this, Li & Fung Group in addition to managing the world's largest consumer goods supply chain, but also has the Canadian casual clothing brand Roots, Swedish casual brand GANT and many other well-known clothing brand agency. Europe and the United States market has always been the main battlefield Li & Fung Group. Feng Guofeng, managing director of Li & Fung Group, said at a general meeting that this year it will focus on expanding business in Europe and the United States as well as its supply chain business and will focus on the acquisition of local businesses in the European Community. "In 2008, the U.S. domestic business income was 1.5 billion U.S. dollars and we want to increase our revenue in this area," said Feng Guolun. "The goal of Li & Fung is to increase U.S. local business turnover to 3 billion U.S. dollars by the end of next year." Fung's operating income in 2007 was 100 billion Hong Kong dollars, compared with 92.45 billion Hong Kong dollars in 2007, an increase of less than 1%. Faced with the economic crisis in Europe and the United States to reduce orders, Li & Fung hopes to continue to acquire new outsourcing business to supplement sales. 2008 Li & Fung has made seven acquisitions, including Imagine, Silvereed, Wilson and other companies. In order to get closer to the three-year plan of US $ 3 billion business turnover in the U.S., and gain investor's trust, Li & Fung Co., Ltd. has implemented several M & A expansion plans this year. On February 24, Li & Fung acquired the Asian sourcing business of the US apparel brand Liz Claiborne Inc for a total consideration of 83 million U.S. dollars, becoming the leading sourcing agent for all of the latter's global brands of apparel and accessories (except jewelry). On August 13, Li & Fung entered into an agreement with Talbots, a U.S. women's fashion retailer, to become the exclusive sourcing agent for the Talbots brand. BOC International expects the company to invest a return on capital of 19%, the highest in past acquisitions. "When asset prices recover to a reasonably reasonable level, it is the best time for the group to seek a takeover plan," said Le Yumin, president of Li & Fung Group. "Li & Fung is studying acquisitions of several U.S. dollars in annual sales of billions of U.S. dollars Business. "He said the company now owns 1 billion U.S. dollars in acquisitions and is expected to be implemented in the coming months. Of course, these acquisitions will provide Li & Fung with more voice in the global retail trade in addition to optimizing the mix of existing and private brands.
