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Gokaldas Exports Ltd (GEL) has entered into an agreement with Matrix Clothing Private Ltd (MCPL) to purchase the entire equity share capital of Matrix Design & Industries Private Ltd for an enterprise value amounting to ₹489 crore, company said in exchange filing.
Around ₹247.5 crore out of the total ₹489 crore is being utilised for the preferential allotment of Gokaldas Exports shares through a share swap arrangement.
Through this deal, GEL receives access to the knit apparel business segments, a mutually exclusive global customer base, greater access to European and the UK markets, geographical diversification and low-cost capacity expansion potential in the future.
Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, said, “We have always believed in continuously adding production capacity at strategic locations enhancing our value proposition to our valued customers. The acquisition of Matrix is an important step in this direction as it is strategically relevant, possesses a good complementary customer base, operationally strong, and above all, a leader in its own sphere.”
Gokaldas Exports Ltd today declared its financial results for the quarter ended December 31, 2023. The company’s net profit reduced by 25 per cent to ₹30.4 crore compared with ₹40.6 crore in the same quarter last year. Its revenue grew by 6 per cent to ₹559.8 crore for the quarter compared with ₹528.1 crore in the same quarter last year.
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