Hong Kong-based consumer group Li & Fung is to acquire PB Group for £48.1 million in a deal that will help boost the Chinese company’s presence in Europe.

Hong Kong-based consumer group Li & Fung is to acquire PB Group for £48.1 million in a deal that will help boost the Chinese company’s presence in Europe.

Li & Fung will purchase PB’s three subsidiaries; the UK-based Peter Black Footwear & Accessories, PB Beauty, and Italy’s Lenci in cash. The companies supply footwear, accessories, gifts and personal care merchandise for retailers such as Marks & Spencer, Tesco, Next, Sainsbury, Body Shop and Boots.

“The acquisition will add capabilities in product design and development in both footwear and beauty businesses, and will double our health, beauty and cosmetics business overnight,” says Bruce Rockowitz, president of Li & Fung.

For the year to January 31, 2007, PB Group recorded net sales of some £189 million and pre-tax profits were about £9.3 million.

Meanwhile, Li & Fung also announced it had entered into an agreement to acquire New York-based Pacific Alliance, Regatta USA and all their related companies, known collectively as Regatta for $148 million (£74.9 million) in cash and shares.

Regatta is a leading apparel and brand management company offering proprietary brands and private label products.

Li & Fung has more than 25,000 staff in 40 countries and revenue of more than $10.4 billion for 2006.