Sanrio hopes to take advantage of Li & Fungs global network

Sanrio hopes to take advantage of Li & Fung's global network

Fung Investment Pte Ltd, a private equity firm headed by the bosses of global sourcing giant Li & Fung, has bought a 1.03% stake in Japan's Sanrio Co, owner of the Hello Kitty brand.

According to local news reports, Sanrio hopes the deal with accelerate its overseas expansion by enabling it to take advantage of Li & Fung's global sales and production network.

There are already synergies between the two companies, since Sanrio sends 10% of its character-goods production - including Chococat, My Melody, and Keroppi - to Li & Fung. Li & Fung also operates toy stores under the US Toys "R" Us banner in China and South East Asia.

Li & Fung is in the process of buying logistics firm Integrated Distribution Services (IDS) in a bid to bolster its domestic distribution network. It also believes the acquisition will help its growth strategy in Asia, particularly in China.