Footwear giant Yue Yuen Industrial Holdings Ltd has bought a 30 per cent stake in Taiwanese sportswear maker Prosperous Industrial Holdings Ltd for US$20 million.

The deal includes an option for Yue Yuen to acquire an additional 10 per cent stake in the company.

"The acquisition of a strategic stake in Prosperous Industrial is an integral part of the group's growth strategy in the sports apparel and accessories manufacturing sector," Yue Yuen executive director Edward Ku said.

Prosperous, whose main production base is in China, had revenue of US$64.6m last year.