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GHCL to buy out fabric maker Dan River
08 Dec '05
2 min read
Well diverisified, Ahmedabad based home textiles major, GHCL Limited informed that it has struck an initial agreement to buy Dan River.
Virginia, US based Dan River Inc is a leading manufacturer and marketer of textile products for the home fashions and apparel fabrics markets.
The Sanjay Dalmia-promoted company, GHCL is also acquiring a majority stake in SC Bega Upsom SA, one of the leading soda ash makers in Romania, for $20m an all-cash deal. An announcement to this effect is expected to be made this week.
GHCL, which has major operations in Gujarat in the areas of textiles and soda ash, signed a preliminary agreement with Dan River some weeks ago. The US company, which was established in the town of Danville, Virigina 123 years ago, emerged from Chapter 11 bankruptcy in February this year.
It has revenue of about $300m, industry sources said.It is a well-known maker of sheets, pillow cases, draperies and woven cotton and cotton blended fabrics for apparel manufacturers.
GHCL's investment in the Romanian firm will be made through an international subsidiary. Initially, GHCL would pick up around 65%. The company is also likely to make an open offer as per the Romanian regulations, the sources added.
The company has planned an investment of about Rs 1000 crore in acquiring a soda ash and textile company in China.
The consumption is expected to remain high due to strong demand from China which is undertaking substantial construction projects related to the Olympic Games and World Trade Fair in '08 and '10.
The Textile division of GHCL is a vertically integrated operation that manufactures premium quality yarn, griege fabric and home textile products like bed linen & curtains.
Virginia, US based Dan River Inc is a leading manufacturer and marketer of textile products for the home fashions and apparel fabrics markets.
The Sanjay Dalmia-promoted company, GHCL is also acquiring a majority stake in SC Bega Upsom SA, one of the leading soda ash makers in Romania, for $20m an all-cash deal. An announcement to this effect is expected to be made this week.
GHCL, which has major operations in Gujarat in the areas of textiles and soda ash, signed a preliminary agreement with Dan River some weeks ago. The US company, which was established in the town of Danville, Virigina 123 years ago, emerged from Chapter 11 bankruptcy in February this year.
It has revenue of about $300m, industry sources said.It is a well-known maker of sheets, pillow cases, draperies and woven cotton and cotton blended fabrics for apparel manufacturers.
GHCL's investment in the Romanian firm will be made through an international subsidiary. Initially, GHCL would pick up around 65%. The company is also likely to make an open offer as per the Romanian regulations, the sources added.
The company has planned an investment of about Rs 1000 crore in acquiring a soda ash and textile company in China.
The consumption is expected to remain high due to strong demand from China which is undertaking substantial construction projects related to the Olympic Games and World Trade Fair in '08 and '10.
The Textile division of GHCL is a vertically integrated operation that manufactures premium quality yarn, griege fabric and home textile products like bed linen & curtains.
The Economics Times
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