A&E to buy majority share of Vardhman Yarns & Threads
New York-based KPS Capital Partners, LP has announced that its portfolio company American & Efird (A&E) has signed definitive agreements to acquire majority ownership of Vardhman Yarns and Threads Limited from its joint venture partner, Vardhman Textiles Limited.
It did not mention the monetary terms of the deal.
Upon completion of the transaction, A&E will own 89 per cent of the joint venture and Vardhman Textiles will own the other 11 per cent, KPS Capital Partners said in a press release. The transaction has been approved by A&E and Vardhman Textiles, but remains subject to approval from the Competition Commission of India and other customary closing conditions.
A&E is the largest US manufacturer and the world's second-largest manufacturer and distributor of premium quality industrial and consumer sewing thread, embroidery thread and technical textiles.
Vardhman Yarns and Threads is India's second–largest manufacturer and distributor of premium quality industrial and consumer sewing thread. Vardhman Yarns and Threads generated revenue of approximately $110 million in FY2015-16, operates 5 manufacturing facilities, employs over 4,500 associates and sells some of the most-widely recognized industrial sewing thread brands in India.
Les Miller, Chief Executive Officer of A&E, said, "The acquisition of Vardhman Yarns and Threads accelerates A&E's continued global growth and diversification. Our long-standing blue-chip customer base, including leading global brands, multinational corporations and regional manufacturers, rely on A&E as a mission-critical supply chain partner.
“Vardhman Yarns and Threads' excellent reputation, world-class operations and leading position in the Indian market will enable A&E to more fully benefit from both fast-growing domestic demand for high-quality products in India and increasing international demand for exports from India. A&E will invest significant capital and resources into Vardhman Yarns and Threads to continue to ensure the highest levels of product quality, environmental sustainability, technological innovation and customer service.”
Michael Psaros, a Managing Partner of KPS, said, "Under KPS ownership, A&E has successfully completed five highly synergistic acquisitions that helped the Company strengthen its world-class strategic global manufacturing, distribution and service platform that provides the A&E with a unique competitive advantage. A&E will continue to aggressively expand into adjacent geographies, products and end-markets around the world. A&E's global reach, product diversity, world-class environmental sustainability practices, and conservative capital structure enable the Company to continue its momentum and success.”
A&E expects to complete the transaction in the summer of 2016. (SH)
Fibre2Fashion News Desk – India