The Hindu Business Line : GHCL acquires US co Best Manufacturing for $35 m

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New Delhi, Feb. 12 GHCL Ltd has acquired US-based home textile player Best Manufacturing Group for $35 million through its international subsidiary GHCL Inc.

Best Manufacturing has an annual turnover of around $160 million and is a leading producer and distributor of home textiles and related items for the hospitality and the healthcare sector in the US, a GHCL statement said. Existing lenders of GHCL's unit Dan River are funding the total acquisition cost of $35 million. The deal would take Dan River's annual turnover to $400 million from $250 million.

Commenting on the deal, the GHCL Chairman, Mr Sanjay Dalmia, said, "This further strengthens our position in the home textiles market of the US, provides us with an ideal opportunity to leverage Best's global platform and a renowned global brand in order to make GHCL one of the dominant player in the home textile space globally."

He said that with the acquisition of Best Manufacturing Group, Dan River would cater to three major segments — retail chains in the US, hotel and restaurant industry and the hospital industry.

"We are soon going to expand the operations for all the three sectors into other parts of the world also, so that we can service these industries globally, including our own... It would be ideal combination of low cost strong manufacturing base with a large established marketing platform to put us on the fast track growth," he said.

Best is headquartered in Jersey City, New Jersey with satellite operations located across the US, Canada, Mexico and Asian countries, the GHCL statement said. The company has two manufacturing plants, one each in Cambodia and Mexico, along with eight warehouses across the US.

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

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