Luen Thai Holdings, headquartered in Hong Kong, has recently bought out their competitor, Universal Elite Holdings. The deal price was 28 million US dollars. Thanks to such acquisition, they created a new outsourcing giant, manufacturing leather bags and currently hiring 50,000 employees in 7 plants (Luen Thai runs some factories in Cambodia, Myanmar, the Philippines and Thailand, while Universal Elite Holdings runs some plants in China, Myanmar and Thailand). Both groups consider the buyout to be “strategic”, especially looking at the US market, since Myanmar and Thailand may benefit from GSP system (Generalized System of Preferences), according to which they can export some duty-free goods into the United States. Luen Thai, (currently employing 40,000 workers) is owned by the family that gives the name to the company. Their overall turnover is due to reach, at the end of the year, over 760 million dollars; about 37% of such revenues will be coming from accessories (the other incomes come from apparel), whose profits enjoyed a remarkable boost in the last six-month period (+35,7%), otherwise jeopardized, as announced by the company, “by demand for prompt provision of small supply quantities”.
Leather goods, Luen Thai buys out Universal Elite to create a new premium end outsourcing giant
