Li & Fung to acquire Lornamead for $190m

Multinational consumer goods sourcing, distribution, and logistics group Li & Fung has announced the acquisition of Lornamead Acquisitions and its subsidiaries Lornamead for $190m.

Lornamead is a UK-based company, which owns and manages a portfolio of traditional and heritage personal care brands such as Finesse, CD, Aqua Net, Yardley and Lypsyl, across hair, body, skin and oral care product categories.

Lornamead operates in the US, Germany and UK and markets over 20 brands in over 60 countries.

The firm sells products to a variety of large retailers such as CVS and Walgreens in the US, Rossmann and DM in Germany, and Boots, Tesco and Sainsbury in the UK.

Lornamead as of 31 March 2012 registered net sales of approximately $155m.

The Hong Kong-based firm is assuming the transaction to further strengthen its growing business operations globally in health, beauty and cosmetics segments.

The transaction, which excluded cash on Lornamead balance sheet, also excluded the Yardley business outside the US, which the company sold in a separate transaction prior to the deal.

Li & Fung group president and CEO Bruce Rockowitz said the firm’s acquisition of Lornamead will further expand its market presence in the beauty business on a global basis.

"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," Rockowitz added.

"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".