Hong Kong-based consumer goods sourcing and distribution company Li & Fung has acquired UK-based personal care company Lornamead.

Lornamead owns and manages a portfolio of traditional and heritage US, German and UK personal care brands such as Finesse, CD, Aqua Net, Yardley and Lypsyl, across hair, body, skin and oral care product categories. It operates from the US, Germany and the UK and sells over 20 brands in more than 60 countries to a variety of large retailers including CVS and Walgreens in the US, Rossmann and DM in Germany, and Boots, Tesco and Sainsbury in the UK.

Total purchase consideration for this acquisition was approximately US$190 million. Li & Fung said the transaction will further strengthen its growing businesses globally in health, beauty and cosmetics.

“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,” said Li & Fung president and CEO Bruce Rockowitz.

“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,” he added.

Li & Fung, which will release its financial report in March, has warned its full-year core operating profit may drop by 40 per cent.

GB