Li & Fung acquires U.S. handbag importer for US$330 mln
Li & Fung Ltd, a Hong Kong-based consumer goods exporter, has agreed to acquire the U.S.-based handbag importer Van Zeeland, Inc to become a leading handbag supplier in the U.S., as per industry sources.
Li & Fung said in a statement that it will invest approximately HK$2.574 (about US$330 million) in acquisition of all the American company’s assets, including the latter’s flagship brands Kathy Van Zeeland Handbags, B. Makowsky and Tignanello.
Li & Fung is expediting its pace of expansion via acquisition as it grows its proprietary brands businesses. The company targets to hit a turnover of US$20 billion by 2010, up from around US$12 billion currently.
Li & Fung said the acquisition will strongly enhance its business presence in the fashion accessories market and will build itself into one of the major handbag suppliers in America.
New York-headquartered Van Zeeland is a leading importer of mid-tier handbag brands, with its products being sold at more than 1.300 retailers, including Macy’s and JC Penny.
Shares of Li & Fung dropped over 30% to close at HK$24.2 yesterday.
Tags: import