Chennai, Feb 5 (IANS) Listed apparel maker SP Apparels Ltd on Monday said it will acquire 51.33 per cent stake in Rs 325.91 crore revenue Young Brand Apparels Private Ltd for Rs 95 crore of rupees
In a regulatory filing, SPApparels said it has signed an agreement to acquire Young Brand Apparels, a subsidiary of Bannari Amman Spinning Mills Ltd.
Young Brand Apparels, a joint venture between Bannari Amman Spinning and Jacob Industries (USA) LLC and Intimark of Mexico, is a manufacturing and export company and a strategic partner of brands focused on the intimate apparel market segment.
Regarding the rationale for the purchase, SPApparels said it would allow it to diversify into other textile segments, strengthen its export basket and also build a broader business model.
The acquisition is expected to be completed on May 31, 2024 subject to regulatory approvals.
Last month, SP Apparels signed an MoU with Bannari Amman Spinning to acquire the latter’s apparel unit located at Palladam HiTech Weaving Park in Palladam in Tamil Nadu and 6.43 acres of land with on-site building No.R-44, SIPCOT, Perundurai in Tamil Nadu.
The consideration was Rs 58 crore and SP Apparels had paid an advance of Rs 10 crore.