Hong Kong-based apparel supplier Li & Fung is said to be in advanced talks to purchase New York-based sourcing firm Synergies Worlwide.

The acquisition will help Li & Fung to gain better foothold in fast fashion and discount clothing market.

Li & Fung, which works with brands and retailers by addressing their specific need in design, sales and marketing, distribution as well as managing the supply chain, aims to achieve US$1.5 billion operating profit by 2013. It says it plans to grow the company organically and through possible acquisitions.

Founded in 1987, Synergies Worlwide provides low cost sourcing in apparel, home textiles, fashion accessories, footwear, decorative accessories, and other goods for companies in the fashion and hospitality industries. It has strong foothold in manufacturing centres in Pakistan, India and Bangladesh.

Both companies declined to comment on the acquisition.

GB