LI & FUNG ACQUIRES GLOBAL SOURCING OPERATIONS OF TOMMY HILFIGER
Transaction enhances Li & Fung's global diversification;
Enables Tommy Hilfiger to access broader buying office network
Mr. Bruce Rockowitz, President of Li & Fung (Trading) Limited, said, "We are very excited to embark on this partnership with Tommy Hilfiger and we see excellent global growth potential for the brand with the new management under the leadership of Fred Gehring. The acquisition of the sourcing operations will bring to Li & Fung substantial additional sourcing volume and reinforce diversification in our sourcing portfolio." Mr. Fred Gehring, Chief Executive Officer of Tommy Hilfiger Group, said, "Our own operated buying offices have contributed tremendously to the development of our business to date, but we believe that to take things forward we can benefit tremendously from the integration of these offices within the greater network of Li & Fung with over 70 offices in over 40 countries and territories, including as many as 19 offices in China alone. The continued dedication of our respective sourcing teams in combination with Li & Fung’s tremendous strength in product development and overall buying power will be an important asset while we continue to develop our brand towards an ever more elevated position."
Completion of the acquisition is expected to take place prior to 28 March 2007.
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About Li & Fung Limited
Li & Fung Limited is the world's leading buying agency for consumer goods, managing the supply chain for retailers and brands worldwide. Headquartered in Hong Kong, the Group services its customers globally through a sourcing network of over 70 offices in 40 countries and territories.
Corporate website: www.lifung.com
About Tommy Hilfiger Group
Tommy Hilfiger Group, through its subsidiaries, designs, sources and markets men’s and women’s sportswear, jeanswear and childrenswear. The Company’s brands include Tommy Hilfiger and Karl Lagerfeld. Through a range of strategic licensing agreements, the Company also offers a broad array of related apparel, accessories, footwear, fragrance, and home furnishings. The Company’s products can be found in leading department and specialty stores throughout the United States, Canada, Europe, Mexico, Central and South America, Japan, Hong Kong, Australia and other countries in the Far East, as well as the Company’s own network of outlet and specialty stores in the United
States, Canada and Europe.
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Contacts:
Li & Fung Limited
Fannie Mok, GolinHarris
Tel: +852 2501 7970
fannie.mok@golinharris.com
Cherry Cheung, GolinHarris
Tel: +852 2501 7918
cherry.cheung@golinharris.com
Tommy Hilfiger
US Media Contact:
Ruth Pachman / Wendi Kopsick
Tel: +1 212 521-4891 / 4867
Ruth-pachman@kekst.com
Wendi-kopsick@kekst.com
European Media Contact:
Seth Goldschlager
Tel.: +33 1 44 43 72 42
Mobile: +33 6 09 42 50 40
Seth.Goldschlager@consultants.publicis.fr
Enables Tommy Hilfiger to access broader buying office network
Hong Kong, 11 February 2007 - Li & Fung Limited (“Li & Fung” or “the
Group”; SEHK: 494) and Tommy Hilfiger announced that a wholly-owned subsidiary of Li & Fung has
entered into an Asset Purchase Agreement to acquire the global sourcing operations of designer
Tommy Hilfiger.
Mr. William Fung, Group Managing Director of Li & Fung Limited, said, "Li & Fung has been on the lookout for acquisition opportunities that would further enhance its global diversification and maintain a much more balanced geographical mix of business. Our share placement executed last year has augmented our capacity for acquisitions and positioned us well to capture this opportunity.” The cash consideration for the purchase is approximately US$247.8 million (HK$1,933 million) and will be financed by Li & Fung’s internal cash reserves. The cash consideration will be payable on completion of the acquisition.
Tommy Hilfiger is one of the largest and most globally developed designer brands in the world with of course a very prominent position in the American market but notably also a very significant European business. It has attained a unique positioning as a premium American lifestyle brand that brings a fresh perspective to traditional, all-American styling. Since its inception as a menswear line, it has successfully developed across a growing number of product categories including womenswear, jeanswear and childrenswear. Its existing buying offices, which will be substantially integrated into the Li & Fung organization, are located in Hong Kong, Taiwan, India, Bangladesh and Sri Lanka. The sourcing volume and unaudited adjusted earnings after tax attributable to the sourcing operations of Tommy Hilfiger for the year ended 31 March 2006 were approximately US$703 million (HK$5,483 million) and US$31 million (HK$242 million) respectively.
Mr. William Fung, Group Managing Director of Li & Fung Limited, said, "Li & Fung has been on the lookout for acquisition opportunities that would further enhance its global diversification and maintain a much more balanced geographical mix of business. Our share placement executed last year has augmented our capacity for acquisitions and positioned us well to capture this opportunity.” The cash consideration for the purchase is approximately US$247.8 million (HK$1,933 million) and will be financed by Li & Fung’s internal cash reserves. The cash consideration will be payable on completion of the acquisition.
Tommy Hilfiger is one of the largest and most globally developed designer brands in the world with of course a very prominent position in the American market but notably also a very significant European business. It has attained a unique positioning as a premium American lifestyle brand that brings a fresh perspective to traditional, all-American styling. Since its inception as a menswear line, it has successfully developed across a growing number of product categories including womenswear, jeanswear and childrenswear. Its existing buying offices, which will be substantially integrated into the Li & Fung organization, are located in Hong Kong, Taiwan, India, Bangladesh and Sri Lanka. The sourcing volume and unaudited adjusted earnings after tax attributable to the sourcing operations of Tommy Hilfiger for the year ended 31 March 2006 were approximately US$703 million (HK$5,483 million) and US$31 million (HK$242 million) respectively.
Mr. Bruce Rockowitz, President of Li & Fung (Trading) Limited, said, "We are very excited to embark on this partnership with Tommy Hilfiger and we see excellent global growth potential for the brand with the new management under the leadership of Fred Gehring. The acquisition of the sourcing operations will bring to Li & Fung substantial additional sourcing volume and reinforce diversification in our sourcing portfolio." Mr. Fred Gehring, Chief Executive Officer of Tommy Hilfiger Group, said, "Our own operated buying offices have contributed tremendously to the development of our business to date, but we believe that to take things forward we can benefit tremendously from the integration of these offices within the greater network of Li & Fung with over 70 offices in over 40 countries and territories, including as many as 19 offices in China alone. The continued dedication of our respective sourcing teams in combination with Li & Fung’s tremendous strength in product development and overall buying power will be an important asset while we continue to develop our brand towards an ever more elevated position."
Completion of the acquisition is expected to take place prior to 28 March 2007.
###
About Li & Fung Limited
Li & Fung Limited is the world's leading buying agency for consumer goods, managing the supply chain for retailers and brands worldwide. Headquartered in Hong Kong, the Group services its customers globally through a sourcing network of over 70 offices in 40 countries and territories.
Corporate website: www.lifung.com
About Tommy Hilfiger Group
Tommy Hilfiger Group, through its subsidiaries, designs, sources and markets men’s and women’s sportswear, jeanswear and childrenswear. The Company’s brands include Tommy Hilfiger and Karl Lagerfeld. Through a range of strategic licensing agreements, the Company also offers a broad array of related apparel, accessories, footwear, fragrance, and home furnishings. The Company’s products can be found in leading department and specialty stores throughout the United States, Canada, Europe, Mexico, Central and South America, Japan, Hong Kong, Australia and other countries in the Far East, as well as the Company’s own network of outlet and specialty stores in the United
States, Canada and Europe.
###
Contacts:
Li & Fung Limited
Fannie Mok, GolinHarris
Tel: +852 2501 7970
fannie.mok@golinharris.com
Cherry Cheung, GolinHarris
Tel: +852 2501 7918
cherry.cheung@golinharris.com
Tommy Hilfiger
US Media Contact:
Ruth Pachman / Wendi Kopsick
Tel: +1 212 521-4891 / 4867
Ruth-pachman@kekst.com
Wendi-kopsick@kekst.com
European Media Contact:
Seth Goldschlager
Tel.: +33 1 44 43 72 42
Mobile: +33 6 09 42 50 40
Seth.Goldschlager@consultants.publicis.fr
© 2008 Tommy Hilfiger Licensing LLC. All rights reserved.