GHCL Limited's home textile division is being acquired by Indo Count for Rs. 576 crore
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08 December 2021, Mumbai:
Indo Count Industries Limited, a leading manufacturer and exporter of home textiles, has signed a Business Transfer Agreement (BTA) with GHCL Limited for the acquisition of its home textile business in Vapi (Gujarat) on a going concern basis through a slump sale, as well as an Asset Transfer Agreement (ATA) for the acquisition of specific assets of GHCL's US subsidiary.
The company's board of directors agreed on a BTA with GHCL for the aforementioned acquisition, which has a fully operating manufacturing capacity of 45 million meters annually located in Vapi, in order to fulfill expanding demand and grasp new prospects.
In the future, the facility will have enough area to increase its capacity. The acquisition cost is Rs. 576 crores. The transaction is projected to close in March 2022, pending appropriate approvals and the completion of the BTA's Condition Precedents (CP). The deal was advised by Edelweiss Finance & Investments Limited, while the legal counsel was Khaitan & Co.
Indo Count stated in a statement that the acquisition will propel the company to the forefront of the global home textiles bedding market. Indo Count becomes the world's largest home textile bedding firm, with an annual capacity of roughly 153 million meters, thanks to the addition of nearly 50% new capacity.
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