Welspun acquires UK-based towel brand

New Delhi, July 3 : Terry towel maker Welspun India Ltd today said Welspun Group has acquired 85 per cent stake in UK-based CHT Holdings Ltd, owner of Christy home textile brand, valuing it at Rs 132.6 crore.

After the acquisition, Christy will become a subsidiary of the company.

The existing Christy Management team will continue to own the remaining stake of Christy and will operate the brand on a stand alone basis.

However, Welspun Joint MD Rajesh Mandawewala has been appointed Chairman of Christy by the company's board.

All the current employees of Christy will continue with the same terms and conditions of employment.

The agreement also provides that from April 1, 2009, the company and the Christy Management shall be able to exercise a put/call option to buy or sell the 15 per cent equity interest retained by the existing Christy management.

UK's leading towel brand Christy has a retail presence in major stores across the UK including Marks and Spencer, John Lewis, House of Fraser, Selfridges and Debenhams. Its annual turnover in the last fiscal stood at Rs 300 crore.

Other brands owned by the company include Tommy Hilfiger for India and Nautica and Umbra for the US and Canadian markets.

UNI