Oxford Sells Womenswear Group To Li & Fung

Atlanta-based apparel producer and marketer Oxford Industries Inc. has sold its Womenswear Group to a division of Hong Kong-based Li & Fung Group for approximately $37 million cash upon closing plus additional cash proceeds of approximately $30 million from retained accounts receivable and in-transit inventories, for total after-tax cash proceeds of approximately $67 million.

“Our Womenswear Group has made a significant contribution to our success over the years, and the decision to pursue its sale has been very difficult,” said J. Hicks Lanier, chairman and CEO, Oxford. “However, we believe this divestiture is an important step in the ongoing strategic repositioning of our company. This transaction will result in a significant improvement in our balance sheet and enable us to continue to invest in the growth of our key consumer lifestyle brands as well as to pursue the acquisition of similar businesses.”

July/August 2006

 

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