Global supply group Li & Fung has entered into an agreement to buy UK private label supplier Visage Group to expand its reach in Europe.
Hong Kong-based Li & Fung said it will pay up to £173m for Visage using cash reserves to fund the acquisition.
Visage also owns young fashion etailer Fashion Union, which sells own-branded product.
Li & Fung said in a statement that the acquisition would provide: “a substantial platform and suitable infrastructure for the future development of the Group’s apparel business in Europe.”
Li & Fung said that the 500 staff currently employed by Visage in the UK, Hong Kong, China, Bangladesh and India will be absorbed into Li & Fung.
The deal is the fourth acquisition in the past year for Li & Fung, which said it has a $1bn (£655m) acquisition fund. The company, which is reported to have a $20bn (£13bn) revenue target for 2010, signed a deal with Asda owner Walmart last month. It also acquired footwear supplier Shubiz in March 2009 for about £15m.