Pursuits
Li & Fung Sells Distribution Unit to DCH for $350 Million
- Sale to close end-June as part of move to simplify business
- Citic's DCH says purchase meant to balance its products
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Li & Fung Ltd., the sourcing company that supplies clothes and toys to U.S. retailers such as Wal-Mart Stores Inc., said it agreed to sell its distribution unit LF Asia to Dah Chong Hong Holdings Ltd. for about $350 million in order to simplify its businesses and focus on trading and logistics.
The deal is expected to close by the end of June, and the proceeds will be used for working capital and to strengthen its capital structure, Li & Fung said in a statement Tuesday. Hong Kong-based Li & Fung has been talking with potential buyers for the business, Bloomberg News reported last month.