GHCL to acquire UK's Textile Co. Rosebys for $40 mln

New Delhi, Jun 19 (UNI) GHCL Ltd, the Dalmia group-owned textile and chemicals company, today said it has agreeed to acquire over 100 per cent of the shares of UK's largest home textiles retailer, Rosebys, at a cost of 40 million dollars.

The equity cost of acquisition will be funded through resources raised from various domestic and foreign institutions, and the acquisition process is likely to be completed by October 2006, after which GHCL would have a complete control over Rosebys's operations.

Rosebys has a strong presence in bedding, curtains and kids garments with over 300 retail outlets across UK and an annual turnover of close to 250 million dollars. The company employs more than 2000 people at present in the UK.

Post acquisition, GHCL would become the world's only integrated home textiles company with presence across spinning, weaving, product design&development, sourcing and distribution to retail stores at a global level.

GHCL Limited Chairman Sanjay Dalmia said, ''This acquisition provides us with an ideal opportunity to leverage Rosebys's established platform across the EU markets and a renowned global brand in order to make GHCL one of the dominant players in the Home textile space globally.'' He added, ''It would be an ideal combination of low-cost strong manufacturing base with a large established marketing platform to put us on the fast track growth.'' In the textiles arena, GHCL had earlier acquired Dan River Inc, which is the leading player in the US textile markets with a turnover of 250 million dollars in Home Textiles.

It has a wide sales and distribution network within the US catering to the largest retailers and preferred supplier to large retailers like JC Penny and Linen&Things, Wal-mart, Bed, Bath&Beyond.

With these acquisitions, GHCL is set to enter into the 40 billion dollar US and UK market accounting for 60 per cent of the global home textiles trade.

In India, GHCL is already in the process of expanding its capacity in spinning from 85,000 spindles to 1,40,000 spindles over the next 18 months.

The company is in the process of completing the state-of-art home textile manufacturing facility at Vapi at a cost of Rs 230 crore, the production for which has commissioned in last couple of months.

GHCL, a multi product progressive organisation, which is part of the Dalmia Group, has closed the financial year 2005, with a total turnover of Rs 515 crore and a net profit of Rs 71 crore.

UNI RA CS VV1719