SP Apparels Signs Agreement To Acquire Assets Of Bannari Amman
SP Apparels Ltd. (SPAL) has signed a definitive agreement to acquire 100 percent stake of Young Brand Apparel along with an apparel unit in Palladam and land and buildings, all in Tamil Nadu for Rs 223 crore.
SP Apparels will acquire all these assets from Bannari Amman Spinning Mills Limited for which it was in talks since the last few months
The apparel manufacturer will purchase a 51.33 percent stake in Young Brand Apparel from Bannari Amman and an additional 49 percent stake from joint venture partners of Young Brand Apparel.
“SPAL intends to finance this acquisition using a well-balanced mix of borrowed funds and internal accruals,” a press release informed.
Through this acquisition, SPAL will be able to further broaden its target markets and customer base while using each other’s capabilities to diversify its product offerings.
“The new manufacturing capacity from the land parcel is anticipated to support SPAL’s future growth,” the media release added.
Set up in December 2006, Young Brand Apparel manufactures and exports intimate wear for brands like American Eagle, Jockey International, Marks & Spencer and Benetton.
“Young Brand Apparel is a strategically important acquisition which is in line with our vision to diversify into other textile and apparel categories,” P Sundararajan, CMD at SP Apparels said.
“This will further strengthen our export basket, market presence, and build a more broad-based business model,” he added.
The SPAL CMD further said that the acquisition will not only strengthen their export spread but also lay a strong foundation for sustainable and resilient business growth.