Li & Fung, a Hong Kong-headquartered group specialising in sourcing, design and distribution, mainly for the fashion and cosmetic industries, has acquired British cosmetics group Lornamead, which manages a portfolio of over twenty U.S., German and U.K. personal care brands, such as Finesse, CD, Aqua Net, Yardley and Lypsyl, across hair, body, skin and oral care product categories.
Lornamead sells its brands in over 60 countries to a variety of large retailers, including CVS and Walgreens in the U.S., Rossmann and DM in Germany, and Boots, Tesco and Sainsbury in the U.K. Lornamead generated net sales of approximately US$155 million (EUR116 million at current rate) in its financial year ended 31 March 2012.
Li & Fung paid approximately US$190 million (EUR143 million) for this acquisition. Li & Fung said this transaction is expected “to further strengthen the Group’s growing businesses globally in health, beauty and cosmetics.”
Worth to note that the operation does not include the Yardley business outside the U.S., which was sold by Lornamead in a separate transaction prior to this deal.
“The acquisition of Lornamead will further expand our market share in the beauty business on a global basis,” said Bruce Rockowitz, Group President and CEO of Li & Fung Limited. “This is a very strong platform and will allow us to deepen our relationships with major retailers across all key markets and provide enormous cross-selling opportunities among our existing Business Networks. In addition, 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.”