Garment manufacturer S.P. Apparels Ltd is set to acquire a 51.33% stake in Young Brand Apparels Private Ltd, a company with INR 325.91 crore in revenue, for a total consideration of INR 95 crore.
According to a regulatory filing, S.P. Apparels has engaged in a Memorandum of Understanding (MoU) for the acquisition of Young Brand Apparels, a subsidiary of Bannari Amman Spinning Mills Ltd.
Young Brand Apparels, a joint venture between Bannari Amman Spinning and Jacob Industries (USA) LLC and Intimark of Mexico, is a manufacturing and export company and a strategic partner of brands focused in the intimate wear market segment.
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Regarding the reason behind the acquisition, S.P. Apparels stated that it aims to diversify into additional textile segments, enhance its export portfolio, and establish a more comprehensive business model.
The acquisition is expected to be completed by May 31, 2024 subject to regulatory approvals.
Last month, S.P. Apparels entered into a Memorandum of Understanding (MoU) with Bannari Amman Spinning to acquire the latter’s garment unit located at Palladam HiTech Weaving Park in Tamil Nadu’s Palladam. Additionally, the agreement includes the acquisition of 6.43 acres of land with buildings situated at Site No. R-44, SIPCOT, Perundurai in Tamil Nadu.
The acquisition cost amounted to INR 58 crore, with S.P. Apparels having made an upfront payment of INR 10 crore.
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