The Bengaluru-headquartered Gokaldas Exports announced that it has, through its wholly-owned subsidiaries, entered into an agreement to acquire Atraco Group (Atraco), a Dubai-based manufacturer of apparel with a strong market position and customer relationships across the US and Europe.
The equity value of the transaction is $55 million and the same will be funded by a mix of debt and internal accruals. The transaction will comprise acquisition of shares and assets and will be subject to customary regulatory approvals. The transaction is expected to be closed by the October-December quarter of this fiscal year.
Atraco’s product range includes shorts, pants, shirts, t-shirts, blouses and dresses catering across age groups, Gokaldas, a listed company, said in a statement.
Founded in 1986, Atraco operates with a network of four manufacturing units in Kenya and one in Ethiopia producing about 40 million garments annually.
Atraco Group’s revenue is about $107 million with a profit after tax of $7.2 million for the calendar year 2022. It has more than 13,000 plus workers spread over multiple locations in Kenya, Ethiopia and UAE, the statement added.
Gokaldas Exports vice chairman & MD Sivaramakrishnan Ganapathi said: “We have always believed in continuously adding production capacity at strategic locations enhancing our value proposition to customers. The acquisition of Atraco is an important step in this direction as it is strategically relevant, possesses a good complementary customer base, operationally strong, and above all, a leader in its own sphere. With this acquisition, we will gain access to low-cost duty-free locations for manufacturing. Together, we can deliver a wider choice and value proposition to our global customers. We look forward to welcoming over 13,000 new members into the GEL family.”
Source: Economic Times