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Lakeland completes acquisition of Qualytextil
15 May '08
3 min read
As the latest addition to Lakeland's expanding international presence, Qualytextil's regional Brazilian operations, including manufacturing, sales and marketing, warehousing, and distribution, benefit from State provided tax incentives, favorable labor rates, and proximity to economical transportation for distribution of garments throughout Brazil and into neighboring countries.
"The primary goal of this acquisition was to accelerate our entry into high growth markets outside of North America," said Christopher Ryan, CEO of Lakeland.
"Qualytextil's obvious strengths in Brazil will be fortified by Lakeland's international expertise and broadening product development efforts.
Collectively, we are well positioned to expand our business into other Latin American countries where there is increasing demand for industrial and workplace garments.
We are particularly excited by Qualytextil's ability to reap the benefits of the Mercosur Treaty of 1994, which establishes favorable trade agreements among member nations.
The Mercosur Treaty currently extends benefits to companies in Brazil, Argentina, Paraguay, Uruguay, and Venezuela as full member nations, plus Chile and Peru as associated members.
The acquisition of Qualytextil should result in Lakeland becoming more profitable, diversifying its international operations, and positioning us to capitalize on some of the greatest opportunities for growth anywhere in the world."
Commenting on the completion of the acquisition, Marcos Vieira, President of Qualytextil, said, "Since we announced our intent to join the Lakeland family, the Qualytextil team has responded with approval by delivering an increase in both sales and profits.
With the added resources and support of Lakeland, we are now more energized than ever to build upon Qualytextil's success to date toward becoming a more dominant force throughout Brazil and all of Latin America."
As part of the process to close on the Qualytextil acquisition, Wachovia Bank, N.A. has extended Lakeland's revolving credit to $30 million, has reviewed and approved the acquisition, and reworked several covenants to accommodate the transaction.
Mr. Ryan further commented, "We are appreciative of the support given to Lakeland by Wachovia Bank and believe the expanding relationship underscores their confidence in our ability to execute on our strategy for future growth."
"The primary goal of this acquisition was to accelerate our entry into high growth markets outside of North America," said Christopher Ryan, CEO of Lakeland.
"Qualytextil's obvious strengths in Brazil will be fortified by Lakeland's international expertise and broadening product development efforts.
Collectively, we are well positioned to expand our business into other Latin American countries where there is increasing demand for industrial and workplace garments.
We are particularly excited by Qualytextil's ability to reap the benefits of the Mercosur Treaty of 1994, which establishes favorable trade agreements among member nations.
The Mercosur Treaty currently extends benefits to companies in Brazil, Argentina, Paraguay, Uruguay, and Venezuela as full member nations, plus Chile and Peru as associated members.
The acquisition of Qualytextil should result in Lakeland becoming more profitable, diversifying its international operations, and positioning us to capitalize on some of the greatest opportunities for growth anywhere in the world."
Commenting on the completion of the acquisition, Marcos Vieira, President of Qualytextil, said, "Since we announced our intent to join the Lakeland family, the Qualytextil team has responded with approval by delivering an increase in both sales and profits.
With the added resources and support of Lakeland, we are now more energized than ever to build upon Qualytextil's success to date toward becoming a more dominant force throughout Brazil and all of Latin America."
As part of the process to close on the Qualytextil acquisition, Wachovia Bank, N.A. has extended Lakeland's revolving credit to $30 million, has reviewed and approved the acquisition, and reworked several covenants to accommodate the transaction.
Mr. Ryan further commented, "We are appreciative of the support given to Lakeland by Wachovia Bank and believe the expanding relationship underscores their confidence in our ability to execute on our strategy for future growth."
Lakeland Industries Inc
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