Stretch fabrics maker to acquire 100% of Elastic Fabrics of America
12 Dec '06
2 min read
Dogi International Fabrics S.A. has signed a Letter of Intent with the shareholders of EFA Holdings LLC, doing business as Elastic Fabrics of America (EFA) to acquire the company.
The acquisition cost is estimated at 33 million USD, less net debt at Closing Date. EFA's turnover and EBITDA for the financial year 2006 are estimated to be 48 and 7 million USD, respectively. Dogi now starts a Due Diligence process.
With this acquisition, Dogi will increase its size by 20% and becomes the only stretch fabric producer covering the market in 5 continents. For Sergi Domènech, Director of DOGI International Fabrics, “with this strategic acquisition our company makes a quantum leap of two years in the achievement of its business plan, both in sales and EBITDA”.
“Domènech also states that this acquisition presents “a great opportunity to provide our customers with a global supply platform, unique in the industry, that will respond to their needs and will add value to their processes”.
The acquisition of EFA, leader in manufacturing stretch fabrics in America means a qualitative advance of Dogi's internationalisation, gaining direct access to the American market. For the Spanish company, which already has manufacturing presence in Asia and Europe, this new addition means “reaching new regions with very competitive labor costs and which are of great interest to our customers ” says Domènech.