Hong Kong group buys leathergoods manufacturer
03/10/2018
Luen Thai, which makes bags and other leathergoods as an outsource manufacturing partner to a number of brands, has agreed to pay US$28 million for 100% of the equity of another Hong Kong-based accessories manufacturer, Universal Group.
Universal has leathergoods factories in China, Myanmar and Thailand, while Luen Thai has manufacturing units for bags and leathergoods in the Philippines and Cambodia.
Luen Thai explained that, if the deal is completed successfully, it believes it will be the only leathergoods manufacturer in the world with factories in four Asian countries with access to the Generalized System of Preferences (GSP).
This means that leathergoods the newly expanded group makes in Myanmar, Thailand, the Philippines and Cambodia will give its customers duty-free access to the European Union and US markets for their branded leathergoods.
If the deal closes successfully it will give Luen Thai a leathergoods workforce of 30,000 people.
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