Freshfields Bruckhaus Deringer (‘Freshfields’) has advised Li & Fung Limited, the world’s leading supply chain solutions partner, on the strategic divestment of its furniture, beauty and sweaters product verticals to True Sage Limited, an investment holding company indirectly wholly-owned by Hony Capital, Fung Holdings (1937) Limited and Fung Investments Limited, for a total cash consideration of US$1.1bn, subject to post-closing adjustments. The strategic divestment completed on 3rd April 2018.

With 250 offices across more than 40 economies, Li & Fung specialises in responsibly managing the supply chains of high-volume, time-sensitive goods for leading retailers and brands worldwide. This strategic divestment is part of the company’s three-year plan to create the supply chain of the future to help its customers navigate the digital economy and represents its continuing effort to streamline its business.
 
The Freshfields team was led by partners Teresa Ko and Edward Freeman and counsel James Hyre. Partner Richard Bird advised on IP/IT and separation issues and partner Andrew Heathcote advised on the financing aspects of the separation. Employment advice was provided by counsel Laura Chapman. Partner Peter Clements advised on the tax aspects of the transaction.

Freshfields previously advised Li & Fung on the establishment of a US$2bn MTN and perpetual securities programme in 2016 and the spin-off listing of Global Brands Group in 2014.