Indo Count Industries Limited, a manufacturer and exporter of Home Textiles, announced it has entered into a Business Transfer Agreement (BTA) with GHCL Limited (GHCL) for acquisition of its Home Textile business at Vapi, Gujarat, on a going concern basis by way of a slump sale and Asset Transfer Agreement (ATA) for acquisition of specified assets of the US subsidiary of GHCL.
In order to meet the growing demand and capture the business opportunities, the Company’s Board today approved a BTA with GHCL for the aforesaid acquisition which has a fully operational manufacturing facility of 45 million meters annually located at Vapi, Gujarat. The facility also has sufficient land to double the capacity in the future. The cost of acquisition is Rs. 576 crores, according to the company’s statement.
Edelweiss Finance & Investments Limited acted as transaction advisor and Khaitan & Co. acted as legal advisor to the transaction.
Commenting on this acquisition, Anil Kumar Jain, Executive Chairman, said: “Today marks a landmark occasion for Indo Count with our Board approving the acquisition of the Home Textile business of GHCL. This is a significant step towards achieving a formidable leadership position in the Home Textile Bedding business ‘globally’. The new enhanced capacity will fuel growth for Indo Count to efficiently scale and serve a wider spectrum of customers and markets thereby increasing its global market share. This strategy enhances our customer centric approach leading to increased flexibility and better service levels. Further, we will leverage the joint capabilities of design and innovation to offer complete sleep experience. We welcome the new team to Indo Count’s family and look forward to utilise their skills and experience to achieve the Company’s long-term vision.”
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