Li & Fung acquires U.S.-based Wear Me Apparel for US$100 mln

Oct. 20, 2009 (China Knowledge) - Hong Kong-listed Li & Fung Ltd<0494>, the world's leading consumer goods exporter, Monday said its wholly-owned subsidiary, LF USA Inc, would buy the young men's and children's apparel business in U.S.-based fashion brand manager Wear Me Appeal, LLC for US$100 million, as part of its efforts to expand overseas.

The acquisition is expected to be completed by the end of next month and will help the company expand into new markets and categories including young men's and junior's and benefit its brands and private label businesses, the company said in a statement.

As part of the transaction, New York-based Kids Headquarters will become the sixth operating division of LF USA and will focus on building its strong portfolio of brands.

The company will continue to pursue its acquisition strategy, and this deal in only one of the many opportunities that we are currently looking at, Bruce Rockowitz, president and executive director of Li & Fung, said in the statement.

In the first half of this year, the company's total turnover totaled HK$46.3 billion.