Hong Kong-based sourcing and logistics group Li & Fung Ltd. said Tuesday it bought personal care company Lornamead Acquisitions Ltd. for approximately $190 million.
This story first appeared in the January 16, 2013 issue of WWD. Subscribe Today.
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.
The company’s shares tumbled more than 15 percent on Monday, their first day of trade on the Hong Kong Stock Exchange after the company released the two pieces of news.