For Immediate Release
Hong Kong, 29th December 1999... Li & Fung Limited (SE: 494) today announced that it had signed a Sale and Purchase Agreement with Swire Pacific Limited (SE: 19) to acquire two of its export trading subsidiaries, Swire & Maclaine Limited and Camberley Enterprises Limited, for a total cash consideration of HK$450 million.
Completion is expected to take place on or before April 2000. Li & Fung intends to fund the consideration from its internal cash resources.
"These acquisitions will significantly broaden our customer base in both of our key markets, the US and Europe," said Li & Fung Group Chairman, Dr. Victor K Fung. "The addition of Swire & Maclaine and Camberley is a further step in cementing our position as one of the world's leading sourcing and supply chain management companies."
"The rich array of resources in Swire & Maclaine and Camberley and the skills and experience of their over 500 staff ideally complement our current business," said Li & Fung Group Managing Director, Mr. William K Fung. "At the same time, I believe that these companies will benefit from the integration with Li & Fung's management systems and technology support. The combined Group will also achieve considerable benefits from economies of scale."
Established in 1946 and headquartered in Hong Kong, Swire & Maclaine is a provider of product sourcing and quality assurance services. Products sourced include garments (around 65% of sourcing turnover) and a range of hard goods such as toys, furniture, gifts, cookware and cutlery. Swire & Maclaine currently has 12 offices in Asia, a service centre in the US and 11 quality control hubs covering some 31 production markets.
For the year ended 31st December 1998, Swire & Maclaine's gross shipment turnover was approximately HK$2,356 million and proforma profit after tax was approximately HK$12.7 million.
Founded in 1979, Camberley is an apparel company that acts as a virtual manufacturer of high quality ladies' sportswear, ready-to-wear fashion, and home accessories. Its customers are retailers, fashion brands and designer labels in the United Kingdom, the United States and Japan. Camberley undertakes design, produces patterns, makes samples, secure raw materials and accessories in its own facilities and then sub-contracts the manufacturing of the apparel itself to factories in Shenzhen, China.
For the year ended 31st December 1998, Camberley's turnover was approximately HK$495 million and proforma profit after tax was approximately HK$35 million.
Li & Fung Limited is today one of the premier global consumer products trading companies managing the supply chain for high-volume, time-sensitive consumer goods including garments, fashion accessories, toys and games, sporting goods, furnishings, handicrafts, shoes, travel goods and tableware. These goods are sourced through a network of offices in over 30 countries for customers in the US and Europe. In the year ended 31st December 1998, Li & Fung's turnover was HK$14,313 million.
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