2011 - Li & Fung Limited

MANAGEMENT DISCUSSION & ANALYSIS (CONTINUED)
TRADING NETWORK
The new additions to Li & Fung’s Trading Network include
the acquisitions of Modium, Celissa, Techno Source, Stone
Sapphire/Gemstone Printing, Loyaltex Apparel, Collection 2000,
Exim Designs, Union Rich, Lloyd Textile and True Innovations.
Modium was acquired in January and is a virtual manufacturer
of ladies’ and men’s woven apparel based in Istanbul,
Turkey. Key competencies are its strong product development
skills and short leadtimes.
Celissa was acquired in March and is a trading company based
in Istanbul, Turkey, supplying wovens and knits to customers in
Europe. Key competencies are short leadtimes and access to
key customers.
In March, Li & Fung also acquired Techno Source USA, Inc.,
one of the fastest-growing toy companies and a toy innovator
with a track record of successfully introducing electronic and
non-electronic games. This acquisition provides a platform
for Li & Fung to continue to build and expand its toy business
globally.
16 LI & FUNG LIMITED | ANNUAL REPORT 2011
In the same month, Li & Fung acquired Stone Sapphire/
Gemstone Printing, a company specializing in the supply
of printed paper products and technical packaging. The
acquisition provides Li & Fung with a platform to source
specialty paper products and complex packaging solutions for
our customers, and it further complements our expertise in the
“Stationery and Supplies” category.
In May, Li & Fung acquired Loyaltex Apparel Ltd. Loyaltex is
a sourcing and development company specialized in knits,
woven/denim and sweater. This acquisition will add a new
portfolio of customers including Aeropostale, which sells
casual clothing to 14-to-17-year-olds through over 900 stores
in the United States, Canada and Puerto Rico; Sanmar, a
major supplier of apparel to screen printers, embroiderers
and promotional product distributors; and Alfred Dunner, the
leading manufacturer of moderately priced ladies coordinated
sportswear in the United States and Canada. This will further
strengthen the Group’s capabilities in global sourcing, as well as
create significant synergies with its existing business.