Hong Kong's Li & Fung acquires Lornamead
HONG KONG — Hong Kong-based Li & Fung — a multinational consumer goods sourcing, distribution and logistics group — has acquired Lornamead for about $190 million.
Lornamead owns and manages a portfolio of U.S., German and U.K. personal care brands — such as Finesse, Aqua Net, Yardley and Lypsyl — across hair, body, skin and oral care product categories. It has operating platforms in the United States, Germany and the U.K., and sells more than 20 brands in more than 60 countries to a variety of large retailers, including CVS and Walgreens in the United States; Rossmann and DM in Germany; and Boots, Tesco and Sainsbury in the U.K. Lornamead generated net sales of approximately $155 million in its financial year ended March 2012.
The transaction excluded cash on Lornamead balance sheet, the Yardley business outside the United States — which was sold by Lornamead in a separate transaction prior to this deal — as well as certain other operations that were retained by Lornamead shareholders.
“The acquisition of Lornamead will further expand our market share in the beauty business on a global basis,” stated 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.”