>>
Home / Knowledge / News / Textiles / Texhong Textile acquires Winnitex for HK$1350 mn

Texhong Textile acquires Winnitex for HK$1350 mn

17
Dec '18
Texhong Textile Group, one of world’s largest core spun yarn suppliers, formed a new joint venture company named Texhong Winnitex Holdings Ltd to acquire the entire equity interest in Winnitex Holdings Ltd, Winnitex Ltd and Zhejiang Qing Mao Weaving, Dyeing, Printing Co Ltd (collectively ‘the Winnitex Group’) at a total value of about HK$1350 million ($172.78 million).

Texhong Winnitex has been set up for the purpose of the reorganisation. It will be held 80 per cent by the Texhong Textile Group and 20 per cent by Wai Chi Kwok, Jacob and Wai Chi Wah, Nelson, said a media release by the company. After deducting the cash received from the acquisition of 20 per cent equity interest in joint venture shares, the net cash consideration to be paid by Texhong Textile will be less than HK$900 million ($115.19 million). The joint venture’s combined annual income will exceed RMB350 million ($50.67 million) after production expansion in Vietnam and Nicaragua.

The Winnitex Group is a renowned leading group in dyed woven fabrics industry. Through business reorganisation, the entire business of the Winnitex Group and the Group’s existing weaving and dyed woven fabrics businesses in Vietnam and Nicaragua will be integrated under Texhong Winnitex. Jacob will lead and manage the new joint venture with his experienced management team. The reorganisation will lead to the establishment of a global vertically integrated industrial chain for the Group’s dyed woven fabrics business, and the Group can also leverage its strategic advantages in Vietnam and the tax-free zone in Nicaragua to generate tremendous synergies.

“Winnitex Group operates over 50 years in the industry and has a long track record of direct sales to large international fashion and workwear brands and is well-known for its service, quality, reliability and innovation within the textile industry. This transaction will enable Texhong Winnitex to leverage our experienced management team and extensive customer base, and significantly increase our annual production capacity of dyed woven fabrics by 90 million yards,” said Hui Tsz Wai, executive director of Texhong Textile.

“Later on the joint venture will lead to an increase in the scale of production in Vietnam and Nicaragua. The vertical integration of spinning, weaving and dyeing activities will establish a new milestone for the Group’s dyed woven fabrics business. Benefitting from the resultant business integration and sharing of customer base, we are confident that the Group’s capability to produce high-quality dyed woven fabrics in China, Vietnam and Nicaragua and its profitability will be significantly enhanced.”

Based on the unaudited pro forma combined accounts of the Winnitex Group, the profit before and after tax for the year ended December 31, 2017 was approximately HK$259 million and HK$213 million respectively. Among the Winnitex Group, Winnitex operates as a holding company while Winnitex HK, wholly owned by Winnitex, principally engages in the sale, marketing and development of dyed woven fabrics in Hong Kong, Zhejiang Qing Mao, etc and primarily provides one-stop services, ranging from spinning, weaving, dyeing and finishing to the production of dyed woven fabrics. (PC)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Anton_Ivanov / Shutterstock.com

Retail | On 27th Jan 2022

UK retail sales volumes fall at fastest rate in 11 months in Dec 2021

UK retail sales volumes fell by 3.7 per cent in December 2021, the...

Pic: Shutterstock

Textiles | On 27th Jan 2022

New train route links China’s Suzhou city to Milan in Italy

A new China-Europe freight train route has been started between...

Pic: Shutterstock

Apparel/Garments | On 27th Jan 2022

UN-WTO report underrates Bangladesh's RMG industry progress: BGMEA

The recent United Nations-World Trade Organisation joint report has...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Uniform designing is a numbers game

Textile Industry, Head honchos

Textile Industry
Head honchos

Hopeful that issue will be resolved by first half of 2022

Textile Industry, Head honchos

Textile Industry
Head honchos

Led by MMF, Indian apparel exports likely to double in next 3 years

Sanmugamagesh,

Sanmugamagesh

<font color="#303030" face="Open Sans, sans-serif">India-based The Chennai ...

Andrea Pelissero,

Andrea Pelissero

Located near Milan, Italy, and with 50 years of experience in the textile...

Ilker Hacioglu,

Ilker Hacioglu

Founded by three partners of French origin in 1988, LC Waikiki started its ...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Serkan Gogus, Mogul Nonwovens

Serkan Gogus
Mogul Nonwovens

Mogul is a global player ranked among the top 40 nonwoven producers in the ...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Sunita Shanker, Label Sunita Shanker

Sunita Shanker
Label Sunita Shanker

Inspired by the rich traditional crafts of India, Sunita Shanker’s work is ...

Asmita Marwa, Asmita Marwa Design

Asmita Marwa
Asmita Marwa Design

Indian fashion designer Asmita Marwa has been rated by Vogue as one of the ...

Reynu Taandon, Label Reynu Taandon + Nikhita

Reynu Taandon
Label Reynu Taandon + Nikhita

Renowned womenswear designer <b>Reynu Taandon </b>has been serving the...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments

ESTEEMED CLIENTS

Amazon China
Vianney Textil Hogar S.A. De C.V.
Bluestem Global Sourcing Limited
Aramark Uniform ;& Career Apparel, LLC
Seasalt Limited
Lifestyle
PVH Corporation
Chico’ FAS
Alix Partners
LC Waikiki
Huntsman (Singapore) Pte Ltd
BIRLA CENTURY A DIVISION OF CENTURY TEXTILES AND INDUSTRIES
Under Armour Global Sourcing Ltd
Reiter India Private Limited
Deckers Outdoor (Guangzhou) Consultant Co., LTD.
Guess Europe Sagl,
Sportmaster Ltd.
Benetton Group
Splash
Maceton Limited
Tommy Hilfiger
Aquarelle Clothing Limited
Tchibo GmbH
Sateri (Jiujiang) Fiber Co.,Ltd
Esprit Europe Services GmbH
Sportswear Company Spa
Grasim Industries Limited
IDH – The Sustainable Trade Initiative
Calvin Klein
THE BOMBAY DYEING ;& MFG.CO. LTD
Cat Tuong Real Estate Group Joint Stock Company
MAS Active / MAS Kreeda / MAS Bodyline
Desigual - ABASIC, S.A.
TESCO INTERNATIONAL SOURCING LIMITED
Hela Clothing Pvt Ltd
John Varvatos
Sainsbury's Argos Asia Limited
Tory Burch Hong Kong Ltd
KIABI
Truetzschler India Private Limited
T.T. Limited
Chori Company Limited
Lenzing Aktiengesellschaft
Vardhman Textile Ltd
Target Corporation (MN)
Decathlon
Page Industries Limited (Bangalore)
BIANCA
H;&M Hennes ;& Mauritz (Far East) Ltd
J ;& P Coats
SYNERGIES HONG KONG LIMITED
HYOSUNG CORPORATION INDIA PRIVATE LIMITED
Brandix Lanka Limited
Varner AS Retail
Boardriders Asia Sourcing Limited
Rosset ;& Cia Limited
Restoque S.A.
C;&A Sourcing International Ltd
Eastman Chemical Company
The LYCRA Company Singapore  Pte. Ltd
Lululemon Athletica Inc
BIMBA ;& LOLA SL
Permoda(Koaj/Armi/Pronto/Bkul)
Etam Group Strategy Hong Kong Limited
Arvind Limited
Lacoste (Wanchai)
Groz-Beckert East Asia LLP
Hirdaramani International Export Private Limited
Puma
IKEA of Sweden AB
Gatsby Africa
KAS Direct Sourcing
Landmark Group
Gloria Jeans
NITI Aayog
Abit
Helly Hansen Far East Ltd
G-Star Raw C.V.
Green Fibre
Phong Phu international JSC (PPJ)
OVS Hong Kong Sourcing Ltd.
Recron Polyester from Reliance Industries Limited
Rayonese Textile Inc., Division de Culp Inc.
Babyshop
Midas Clothing Limited
Walmart
Alison Hayes Romania
SHAHI Exports Pvt Ltd
Asos
The Top Form Brassiere Manufacturing Company Limited

January 2022

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search