Indo Count Industries Limited, a leading manufacturer and exporter of home textiles, has entered into a Business Transfer Agreement (BTA) with GHCL Limited for acquisition of its home textile business at Vapi (Gujarat) on a going concern basis by way of a slump sale and Asset Transfer Agreement (ATA) for acquisition of specified assets of the US subsidiary of GHCL.
In order to meet the growing demand and capture the business opportunities, the company’s board approved a BTA with GHCL for the aforesaid acquisition which has a fully operational manufacturing facility of 45 million metres annually located at Vapi.
The facility also has sufficient land to double the capacity in the future. The cost of acquisition is Rs. 576 crores.
The transaction is expected to be consummated by March 2022 subject to necessary approvals and completion of Condition Precedents (CP) in the BTA. Edelweiss Finance & Investments Limited acted as transaction advisor and Khaitan & Co. acted as legal advisor to the transaction.
In a statement, Indo Count said that this acquisition will catapult Indo Count to a leadership position in the global home textiles bedding segment.
With the addition of almost 50 per cent new capacity, Indo Count becomes the largest home textile bedding company, globally, with an annual capacity of approximately 153 million metres.
The transaction includes acquisition of the home textile business of GHCL Limited as a going concern, on a slump sale basis, which includes its manufacturing facility at Vapi, Gujarat along with specified assets (inventory and intellectual property) of Grace Home Fashions LLC, US subsidiary of GHCL.
Anil Kumar Jain, Executive Chairman, Indo Count said, “Today marks a landmark occasion for Indo Count with our board approving the acquisition of the home textile business of GHCL. This is a significant step towards achieving a formidable leadership position in the home textile bedding business ‘globally’. The new enhanced capacity will fuel growth for Indo Count to efficiently scale and serve a wider spectrum of customers and markets thereby increasing its global market share.”