Hong Kong-based multinational Li & Fung Ltd. said Wednesday that it will become a sourcing agent for Chinese athletic goods brand Li Ning for both domestic and international markets.
Li Ning is a major player in the Chinese market and rose to international prominence during the Beijing Olympics in 2008, when the company’s founder and namesake, six-time Olympic medal-winning gymnast Li Ning, lit the Olympic flame during the opening ceremony.
The agreement will cover sourcing for a certain range of brands in both international and domestic China markets, including soft goods for Li Ning’s popular running, basketball and lifestyle lines, the company said.
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“We are very pleased to source for many of Li Ning’s highly popular sports brands in China. Clearly, China has already become a huge consumer market that continues to expand and offer tremendous opportunities,” said Bruce Rockowitz, president of Li & Fung. “This represents not only another world-class addition to Li & Fung’s existing customer base, but also a significant step forward in our growth strategy for the LF Asia platform.”
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Separately, Li & Fung said it is concluding its acquisition of logistics and distribution firm Integrated Distribution Services Group Ltd., or IDS. The company said this summer it was launching a bid for IDS in a deal valued at 7 billion Hong Kong dollars, or $901 million at current exchange. Li & Fung said Wednesday that 99.02 percent of IDS shares were accounted for through a share swap scheme and it would pay out cash for the remaining 0.98 percent of shares of the company.
“With substantial cash reserves — even after the IDS acquisition — we will be able to take full advantage of any opportunities that may arise,” Rockowitz said.