The Hindu Business Line : Spentex buys Czech firm for $25 m

New Delhi, July 1 Spentex Industries, the largest yarn manufacturer in the country, has acquired Schoeller Litvinov K.S. in the Czech Republic for $25 million thus gaining access to the high margin European market.

This would help Spentex have footprints in the Czech Republic, Germany, France, Belgium, Netherlands and Luxemburg. It will also gain access to a large customer base in over 30 countries.

The transaction will enhance the topline of Spentex by about €55 million and add another €6 million per year in cash flows, a company release said. Schoeller’s revenues during the year ending 2006 were €54.5 million.

This is Spentex’s fourth acquisition in the recent past. It acquired SK Birla group’s Cimmco Spinners, Indo Rama Textiles and the Uzbekistan-based Tashkent-To’yetpa Tekstil earlier.

“This acquisition is in line with our inorganic growth strategy of acquiring good, operational assets of strategic value. It not only enhances our presence in the high margin European markets but also increases our client base substantially,” Spentex Industries Managing Director, Mr Mukund Choudhary, said.

The company is eyeing one more acquisition this year. “This will again be a global acquisition and its value would be more than the value of this deal,” he said.

More Stories on : Mergers & Acquisitions | Overseas Investments | Textiles

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