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Brookmann buys Dawson home textiles business
May '11
Bookmann Home, the investment group of Brook Johnson and Myron Mann, has bought Dawson Home Group (DHG), the bed linen division of Dawson International. Under the deal, Brookmann will pay £4 million in cash, and also purchase around £2.5 million of DHG stock.

Based out of Ardwick, Manchester, DHG sells its own Vantona brand of bed-linen. It also designs and sources for a number of UK retailers. In recent times, it had suffered due to a surge in cost of cotton raw material and had experienced tough trading conditions.

The Brookmann Home shall retain all the 53 employees currently with the DHG business which incurred an operating loss of £1.5 million in 2010 on a turnover of £30.3 million. Dawson, on its part, may utilize some of the cash received through the deal towards reducing its pension deficit.

With the sale of its home furnishings division, Dawson International will be able to focus on its core cashmere activities, according to its Chairman David Bolton. The company is already in the process of combining the management of its remaining businesses – Barrie and Dawson Forte.

The new division will function as Dawson Cashmere, through which the company will strive to achieve recovery and growth of its businesses.

The deal is a win-win situation for both the groups as Brookman will get a well-known UK outlet like the DHG's for its overseas production, whereas the cost pressures being experienced by DHG may be mitigated due to the many strategic alliances that Brookman has with manufacturers around the world.

Fibre2fashion News Desk - India

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