S P Apparels Ltd (SPAL), a leading apparel manufacturer and exporter, has signed a definitive agreement to acquire Young Brand Apparel Private Limited (YBAPL), a subsidiary of Bannari Amman Spinning Mills, for a value of Rs 223 crore.
This includes the garment unit situated at Palladam of Bannari Amman Spinning Mills, and the land and building situated at SIPCOT (The State Industries Promotion Corporation of Tamil Nadu Limited). Under a strategic acquisition initiative, SPAL plans to acquire a 51.33 per cent stake from Bannari Amman in Young Brand Apparel Private Limited and undertake to acquire a 49 per cent stake in YBAPL from joint venture partners. To fund this acquisition, SPAL will leverage a balanced combination of internal accruals and borrowed capital.
Incorporated in December 2006, YBAPL is a manufacturing and export company based in Tamil Nadu. The company manufactures intimate wear for brands like American Eagle, Jockey International, Marks & Spencer, and Benetton. The company exports to countries such as the US, the UK, Japan, and Canada.
With this acquisition, SPAL will be able to diversify its product offerings and further expand its customer base and target markets. The land parcel is expected to boost SPAL’s manufacturing capacity to fuel future expansion.
“YBAPL is a prominent name in the intimate wear manufacturing segment with a robust presence in key global markets and strong manufacturing capacity. The company is scaling up its business in markets like the US, UK, etc,” said P Sundararajan, chairman and managing director, S P Apparels Limited.
YBAPL reported revenue of Rs 329 crore for the financial year ended on March 31, 2023.
