Hong Kong-based consumer goods group Li & Fung has acquired Lornamead Acquisitions and its subsidiaries for $190 million, securing a significant portfolio of personal care brands.
Lornamead owns and manages a number of traditional and heritage personal care brands from the USA, United Kingdom and Germany, which include names such as Yardley, Aqua Net, Finesse and CD.
For the fiscal year 2012, Lornamead had a turnover of $155 million, and the addition of the new brands is expected to help develop Li & Fung’s growing portfolio in the health, beauty and cosmetic arena.
Lornamead portfolio stretches to 20 brands in 60 countries
The Lornamead brands have significant national and international reach and stretch across almost personal care categories, including hair, body, skin and oral care products, which stretches to 20 brands sold in 60 countries.
These products are distributed to some of the biggest retail names in the world, including CVS and Walgreens in the US, Rossman and DM in Germany, and Boots, Tesco and Sainsbury in the UK.
The companies confirmed that the acquisition would not include the US operations for the Yardley brand which have already been sold off in a separate deal, together with some other operations that have been retained by Lornamead shareholders.
Building on Li & Fung's existing beauty portfolio
Speaking of the acquisition, Bruce Rockowits, group president and CEO of Li & Fung said: "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.”
“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.”
Li & Fung is divided into three principle business areas, logistics, distribution and trading, with the latter recently acquiring a number of cosmetics brands, including UK-based Collection 2000.