Interviews
News Flash
GHCL to acquire US home textile major Dan River Inc
26 Dec '05
3 min read
Mutual PR informs that a multi product progressive organization GHCL Limited has signed an agreement to acquire over 90 percent of US textiles major Dan River's through its international subsidiary. This transaction will be completed shortly.
The Equity cost of acquisition will be US $17.50 million which will be funded through recently concluded FCCB issue proceeds, while the existing debts will be refinanced. The acquisition process is likely to be completed by first week of January 2006, after which GHCL would have a complete control over Dan River's operations.
Dan River Inc, which already has its outsourcing arm in the major textile belts of Asia such as China and Pakistan, is the leading player in the US textile markets with an annual turnover of $250 million in home textiles.
It has a widest sales and distribution network within US catering to the largest retailers and preferred supplier to large retailers like JC Penny and Linen & Things, Wal-mart, Bed, Bath & Beyond.
This acquisition enables GHCL to enter into existing marketing arrangements of $250 million even before the Indian manufacturing unit at Vapi, Gujarat commences in March 06. Dan River is well known for its own brands in the high-end segments such as 'Bed In a Bag', Marquis Home Collections and also the well-known Alexander Julian, in addition to other high margin Juvenile Segments as well.
Mr. Sanjay Dalmia, Chairman, GHCL Limited said, “This acquisition provides us with an ideal opportunity to leverage Dan River's global platform and a renowned global brand in order to make GHCL one of the dominant player in the Home textile space globally.”
The Equity cost of acquisition will be US $17.50 million which will be funded through recently concluded FCCB issue proceeds, while the existing debts will be refinanced. The acquisition process is likely to be completed by first week of January 2006, after which GHCL would have a complete control over Dan River's operations.
Dan River Inc, which already has its outsourcing arm in the major textile belts of Asia such as China and Pakistan, is the leading player in the US textile markets with an annual turnover of $250 million in home textiles.
It has a widest sales and distribution network within US catering to the largest retailers and preferred supplier to large retailers like JC Penny and Linen & Things, Wal-mart, Bed, Bath & Beyond.
This acquisition enables GHCL to enter into existing marketing arrangements of $250 million even before the Indian manufacturing unit at Vapi, Gujarat commences in March 06.
Mr. Sanjay Dalmia, Chairman, GHCL Limited said, “This acquisition provides us with an ideal opportunity to leverage Dan River's global platform and a renowned global brand in order to make GHCL one of the dominant player in the Home textile space globally.”
Popular News
Leave your Comments
Pratik Gadia
The Yarn Bazaar - Filosha Infotech Private Limited
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
