Welspun buys 76% stake in Portuguese co
Welspun India, global major in terry towel making, has acquired 76% stake in Portugal-based Sorema, Tapates e Cortinas de Banho, SA (Sorema) for Rs 60 crore.
The acquisition will bring significant benefits of synergy for both the companies considering their complementary strategies and business profiles, said the company in a statement. Welspun had acquired 85% of the UK’s largest towel firm Chirsty in July 2006.
Sorema is a leading player in bath rugs and shower curtains. The company’s annual turnover was Rs 57 crore last year. It has a network spanning 40 countries including the US, England, Spain and Germany.
After the acquisition, the existing Sorema management will own 24% stake. Rajesh Mandawewala, joint managing director of Welspun India, has been appointed chairman of Sorema.
Post acquisition, Sorema will become a subsidiary of Welspun and all the employees will continue with the same terms and conditions of employment, said the company. On Wednesday, the shares of Welspun India fell 2.12% to Rs 99.05 on the Bombay Stock Exchange (BSE).