Li & Fung announced yesterday it acquired most of Wear Me Apparel's assets for a total consideration of no more than $ 401.8 million (approximately HK $ 3.134 billion). Of the consideration of the Acquisition, of which 101.8 million (approximately HK $ 794 million) will be paid in cash and the remaining 300 million (approximately HK $ 2.34 billion) will be payable on the pending installments determined by Wear Me Apparel's performance over the next 5 years. The expected acquisition will be Completed by the end of November 2009. The announcement said Wear Me Apparel is a prominent designer, marketer and distributor of young men's and children's clothing in the United States and manages a portfolio of franchises for domestic brands, specialty brands, private labels and cartoon characters, both traditional and medium Grade department stores to large retailers and other distribution channels for sale. The business is run by the New York branch with about 520 employees in the United States, about 220 in Hong Kong, China, the Philippines, Thailand, India and Bangladesh, and net sales of Wear Me Apparel in 2008 of around $ 700 million. Kids Headquarters specializes in licensing a number of well-known franchise, private, and cartoon franchises, including Calvin Klein, Ecko, Timberland, Hurley, Rocawear, US Polo Association, Disney, Marvel, Nickelodeon, Warner Brothers and Hasbro A well-known brand. Following the completion of the transaction, New York-based Kids Headquarters will be the sixth business unit of Li & Fung (USA) and will focus on developing its strong brand portfolio. Kids Headquarters branded products are sold in traditional and mid-range department stores, as well as major retailers including Macy's, Kohl's and Wal-Mart. Rick Darling, president of Li & Fung USA, said the acquisition will significantly strengthen Li & Fung's growth platform in the United States and extend to new markets and product categories, including young men's and children's clothing, through its global sourcing capabilities and deep relationships with the retail industry . The acquisition will make the Group a more powerful and valuable partner for retailers and benefit the entire brand portfolio and private label businesses. Le Yue Feng, president of Li & Fung Trading, said Wear Me Apparel is an outstanding company and the group is very pleased with the acquisition and can greatly benefit all parties involved. The Group will continue to implement the Group's acquisition strategy, which is only one of many acquisition opportunities currently available. The Group has a number of potential acquisition targets and the Group has never seen so many good acquisitions. The counter soared 3.74% yesterday to close at HK $ 34.65.