Last summer we
highlighted how Hong Kong's Li & Fung Ltd. took advantage of the economic slump by acquiring several U.S. retail companies. Now comes news that the consumer goods exporter plans to raise HK$2.7 billion ($348 million) selling new shares at a discount to fund
acquisitions in the U.S. and Asia, according to a Bloomberg report.
Without elaborating on potential targets, president Bruce Rockowitz told Bloomberg, "We see a lot of opportunities in the U.S. right now to buy things that we've always wanted to buy, at prices that we feel are very reasonable."
Last year, Li & Fung grabbed U.S. handbag importer Van Zeeland Inc., which sells apparel to Macy's Inc. (NYSE:M) and J.C. Penny Co. (NYSE:JCP), for $330 million. Among some other buys, it also acquired the sourcing offices of Toys "R" Us Inc., Timberland Co. (NYSE:TBL) and Tommy Hilfiger Corp.
Li & Fung, which is the biggest supplier of clothes and toys to Wal-Mart Stores Inc. (NYSE:WMT) and Target Corp. (NYSE:TGT), recently posted its
first profit decline in seven years. In February, it paid Liz Claiborne Inc. (NYSE:LIZ) $83 million to act as its primary global apparel and accessories sourcing agent for all brands in its portfolio.
News of Li & Fung's capital raising
surprised market watchers since it had raised $500 million in September for acquisitions with a share sale to Temasek Holdings Pvt. Ltd. -
Baz Hiralal
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