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Thread producer ACA buys out competitor
Jan '11
Cape Town based sewing thread manufacturer ACA Threads has bought competitor A&E South Africa in a deal which shows faith in the future of South Africa's often beleaguered textile industry.

A&E is the South African subsidiary of US Company American & Efird.

The combined turnover of the two companies is around R70-million per year. Acquired as a going concern, the 55 staff members from A&E's Epping premises will be incorporated with the 86 staff at ACA Threads Brackenfell factory during the course of the year.

Eckhard Marshing, CEO of ACA Group, says the deal will ensure a world class supply base to satisfy existing and growing needs of retail for strong local manufacturing businesses. “There is an increasing trend to look inside of South Africa and its neighbouring countries as the Chinese are starting to retain their goods for their own use, and import prices and logistical challenges attached to importing increase. South Africa is realizing that we need a solid local supply base, and government is supporting the process through its production incentive programs.”

ACA Threads, started by Marshing's father Herbert in 1953, takes pride in having always maintained a policy of investment in South Africa throughout its years of development, and in having been a pioneer in many fields of its manufacture, with the introduction of the latest and most advanced technologies, thanks to its 40-year association to leading German company the Amann Group.

“Fifty years ago we were just starting out, now we are moving into a leadership role in the marketplace,” Marshing says. “I view the deal as giving us the critical mass to afford continued investments into technology, logistics and people and a long-term positioning for Africa's role in textile manufacturing.”

ACA Threads has signed a licence agreement with A&E International and will combine the A&E and Amann technology and brands to service its Southern African client base that includes amongst other Toyota, Bravo Group, Vitafoam, Seardel, Jonssons Workwear, Jockey, Peter Blond, House of Monatic, Coricraft, Reebok, Bata, Jordan, Watson Shoes and Palm Footwear Group .

ACA Threads

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