The Hindu Business Line : Himatsingka buys 70% stake in Italian co

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Bangalore March 1 Himatsingka Seide has completed the acquisition of a 70 per cent equity stake in Giuseppe Bellora SpA, Italy. This is consequent to the signing of definitive agreements in January.

Mr Giuseppe Bellora will continue as the Managing Director and hold 30 per cent of the equity in the company.

Himatsingka acquired a 59.74 per cent stake at an enterprise value of 20 million (including 7 million of long-term debt) from a private equity firm and the promoter family. In addition, it infused an incremental 3.75 million as fresh equity to increase its stake to 70 per cent.

According to a press release, this acquisition is in line with the Himatsingka strategy of investing in luxury brands and distribution networks in the home textile space.

Mr Shrikant Himatsingka, Executive Director, Himatsingka Seide, said, "We believe that this acquisition has synergies with the greenfield bed linen project coming up at Hassan SEZ, Karnataka, at an investment of Rs 400 crore."

Giuseppe Bellora SpA reported a consolidated top line of 29.8 million for the year ended December 31, 2006. The `Bellora' brand is present through exclusive stores, departmental stores and multi-brand outlets across Europe.

Giuseppe Bellora SpA also owns the brand `La Casa Italiana', a home textile brand through its subsidiary BP Venture. Himatsingka funded the acquisition out of the GDR proceeds of $60 million raised in December 2005, said the release.

More Stories on : Mergers & Acquisitions | Brands | Textiles

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