Hong Kong-based sourcing and logistics group Li & Fung Ltd. said Tuesday it bought personal care company Lornamead Acquisitions Ltd. for approximately $190 million.
Lornamead’s brand portfolio includes American, German and British brands such as Finesse, CD, Aqua Net, Yardley and LypSyl.
Li & Fung said England-based Lornamead has operating platforms in the U.S., Germany and the U.K. and generated net sales of approximately $155 million for the financial year ended March 31, 2012.
Li & Fung said the deal is expected to strengthen its growing beauty and health products business.
“The acquisition of Lornamead will further expand our market share in the beauty business on a global basis,” said Bruce Rockowitz, Li & Fung’s president and chief executive officer. “As we see increasing opportunities in the beauty business across Asia, this transaction will add a strong growth driver for LF Asia in the beauty and cosmetics arena.”
Li & Fung said the deal excludes cash on Lornamead’s balance sheet and the Yardley business outside the U.S., which Lornamead previously sold in a separate transaction. It also excludes certain other operations that were retained by Lornamead shareholders, Li & Fung said.
In August, Rockowitz told WWD that the company was eyeing European companies for potential acquisitions and looking to bolster its beauty business, which already had sales of $1.2 billion.
“Just like in the U.S. in 2008 and 2009, there’s a lot of opportunity in Europe for good companies that need, maybe, a stronger partner,” Rockowitz said. “We’re definitely looking there.”
Li & Fung has faced a couple of recent setbacks. A slower-than-expected turnaround of its U.S. unit forced it to issue a profit warning on Friday. That same day, it made a major shake-up of its management, tapping Dow Peter Famulak as ceo of LF USA to replace Rick Darling.
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