Chennai, Feb 5 (IANS): Listed garment maker S.P. Apparels Ltd on Monday said it will acquire 51.33 per cent stake in the Rs 325.91 crore revenue Young Brand Apparels Private Ltd for Rs 95 crore.
In a regulatory filing, S.P.Apparels said it has entered into an MoU 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 in the intimate wear market segment.
As to the rationale for the purchase, S.P.Apparels said it would enable diversification into other textile segments, strengthen its export basket, and also build a more broad-based business model.
The acquisition is expected to be completed by May 31, 2024 subject to regulatory approvals.
Last month S.P. Apparels inked a MoU with Bannari Amman Spinning to acquire the latter’s garment unit located at Palladam HiTech Weaving Park in Tamil Nadu's Palladam and 6.43 acres of land with building situated at Site No.R-44, SIPCOT, Perundurai in Tamil Nadu.
The purchase consideration was Rs 58 crore and S.P. Apparels had paid an advance of Rs 10 crore.