Li & Fung buys Lornamead for $190 mln to beef up personal care business
HONG KONG Jan 15 (Reuters) - Global supply chain manager Li & Fung Ltd said on Tuesday it had acquired Lornamead Acquisitions Ltd for about $190 million, as it strengthens its business globally in health, beauty and cosmetics.
Lornamead owns a portfolio of personal care brands in the U.S., Germany and the U.K., including Finesse, Aqua Net and Yardley.
"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," CEO Bruce Rockowitz said in a statement.
Lornamead, which has operating platforms in the U.S., Germany and the U.K., sells more than 20 brands in over 60 countries to retailers, including CVS and Walgreens in the U.S., Rossmann and DM in Germany, and Boots, Tesco and Sainsbury's in the U.K.
Shares of Li & Fung Ltd remained under pressure on Tuesday after Moody's changed its rating outlook to negative, and Standard & Poor's Ratings Services put the company's "A-" Rating On CreditWatch Negative, sending the stock to its lowest since August 2011. It ended down 0.5 percent at HK$11.68.
The moves came after Li & Fung flagged a 40 percent fall in core operating profit on Friday, surprising investors, just two months after an analyst briefing.
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