Hong Kong's Li & Fung Ltd. -- the supply chain maestro that manufactures all those clothes and toys for Wal-Mart Stores Inc. (NYSE:WMT) -- is
on the record about the recession being a great time for it to make acquisitions. But it keeps raising the ante, so we keep writing about it.
On Thursday, after reporting a first-half surge in net income of 13%, to $181 million, president Bruce Rockowitz reiterated the company's
interest in acquisitions, and in an interview with Bloomberg said the company is "sitting with about $1 billion of firepower." The abundance of targets led him to compare himself to the proverbial kid in a candy store.
Managing director William Fung told reporters the company is eyeing deals in
beauty, health and cosmetics, in the U.S. and Europe.
Oft-celebrated by management consultants for its nimbleness and
flexible business model, this is a company that stays busy. On Thursday Li & Fung announced an outsourcing agreement with Talbots Inc. 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.
And 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. -
Kenneth Klee
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