GHCL acquires Dan River for $17.5 million

By agencies   |   Wednesday, 28 December 2005, 08:00 Hrs
Printer Print Email Email
AHMEDABAD: Dalmia-owned textiles and soda ash maker GHCL Ltd has signed an agreement to acquire Dan River Inc, a leading textiles player in the U.S., for $17.50 million. Through its international subsidiary, GHCL, will acquire over 90 percent of Dan River on January 2, the company Chairman, Sanjay Dalmia said. The acquisition of Dan River enables GHCL to enter into existing marketing arrangements to the tune of $250 million and the U.S.-based company will be used primarily as a marketing arm. Dalmia said, “We plan to outsource most of the production to units in India, Pakistan and China and shut down several Dan River's production units in the U.S. By the end of next year, less than 20 percent of the production will take place in the U.S.” Dan River has an annual turnover of about $250 million and caters to mega retailers such as JC Penny, Wal-Mart, Linen & Things and Bed, Bath and Beyond. The acquisition was financed through its $70 million foreign currency convertible bonds issue that concluded earlier this year.

SPOTLIGHT
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..