Gokuldas Exports Ltd (GEL), one of India’s biggest clothing exporters is acquiring the knit garment division of Matrix Clothing Private Ltd (MCPL) for an enterprise value of Rs 489 crore.

The payment of Rs 489 crore will be done through preferential allotment of shares of Gokaldas Exports using a share swap totalling to Rs 247.5 crore.

The GEL board of directors also approved an issue of 2.73 million equity shares of the company to MCPL at Rs. 901.14 per share.

Through this acquisition, GEL will have access to a knit garment business segment, a mutually exclusive global customer base greater access to European and the UK markets and also geographical diversification.

GEL MD Sivaramakrishnan Ganapathi said that GEL has always believed in continuously adding production capacity at strategic locations enhancing its value proposition to its valued customers.

“The acquisition of Matrix is an important step in this direction as it is strategically relevant and possesses a complementary customer base and is also operationally strong,” Ganapathi stated.

GEL which recently released its third fiscal quarter result reported a net profit decline of 25 percent year on year to Rs 30.4 crore, while revenues grew 6 percent from a year ago quarter to Rs 559.8 crore.

Indian Apparel, Apparel & Textile News