Trading giant Li & Fung announced yesterday it had agreed to buy a United States private-label women's apparel producer for US$37 million.
The acquisition of Oxford Womenswear Group, a subsidiary of Oxford Industries, is expected to be completed this month. The deal would be financed by cash and bank loan, the group said.
The move follows a string of acquisitions and tie-ups in the past 18 months as the group consolidates business overseas.
'The acquisition of the Oxford Womenswear Group will greatly boost the scope of our business and the capabilities of our private-label wholesale business in the US,' said Li & Fung group managing director William Fung Kwok-lun.
'Through acquisitions and organic growth, the group has now developed a sizeable business in the US to supply retailers, especially in the mid-tier department stores and mass market segments,' he added.
Oxford Womenswear, which produces budget and moderately priced women's clothes, mainly supplies mass merchants, such as Target and Wal-Mart.