15 March 2007 | Paul Snell
Fashion design house Tommy Hilfiger has sold its global sourcing department to the Hong Kong based sourcing firm Li & Fung (L&F) for $247 million (£128 million).
Hilfiger's buying offices in Hong Kong, Taiwan, India, Bangladesh and Sri Lanka will be integrated into L&F's sourcing network. L&F has been trading in the Far East for more than 100 years and operates 70 buying offices in 40 countries.
The group employs about 8,000 staff and most of its offices are in Asia.
William Fung, group managing director of L&F, said: "L&F has been on the lookout for acquisition opportunities that would further enhance its global diversification and maintain a much more balanced geographical mix of business."
Hilfiger's sourcing spend was around $703 million (£361 million) in the last financial year. It primarily purchases finished products, but also sources material from the region.
Fred Gehring, CEO of Tommy Hilfiger, said: "Our buying offices have contributed tremendously to the development of our business, but to take things forward we can benefit from the integration of these offices within L&F's network."
A spokesman for Hilfiger said that no redundancies were expected as part of the sale. The 300 permanent and 26 temporary staff that work at the firm's sourcing departments in Hong Kong and India will be offered positions with L&F.
He added that changes at other offices on the sub-continent were not expected. The sale is expected to be completed by the end of this month.