Li & Fung to buy Oxford Industries

Li & Fung (0494.HK), Wal-Mart’s (WMT.NYSE) largest retail supplier, will purchase Oxford Industries (OXM.NYSE) for US$121.7 million, Bloomberg reported. The Hong Kong-based company has experienced a surge in orders and is looking to acquire brand manufacturers. The sale should prove a boon for Oxford, which will realize a gain of US$2.80 a share and cash proceeds of US$90 million. The US-based clothing retailer plans to use the new revenue to develop its Tommy Bahama and Ben Sherman brands, the company said in a statement. Li & Fung, which has experienced revenue growth for 17 of the past18 years, recently purchased Integrated Distribution Services Group (2387.HK) with the aim of increasing its revenues from China and Southeast Asia.