Himatsingka Seide buys 80pc stake in US firm

New Delhi, July 3: Textile firm Himatsingka Seide Ltd today said it has acquired 80 per cent stake in US-based Divatex Home Fashions Inc for 53 million dollars.

The enterprise value for the transaction was 75 million dollars.

The company acquired the stake through its wholly owned subsidiary, Himatsingka America Inc, it said in a statement.

Divatex, one of the leading distributor of bed linen products in the US, reported revenues of 151 million dollars for the year ended December 31, 2006 with an EBITDA of 14 million dollars.

With the acquisition, there will be significant synergies for sourcing requirements from the new 100 million dollars bed linen facility of Himatsingka at the Hassan Special Economic Zone in Karnataka.

The facility has commenced trial production and is likely to commence commercial production from this month.

Himatsingka Seide Executive Director Shrikant Himatsingka said, ''Over the past year, Himatsingka has made significant investments in M&A, green field initiatives and organic expansions in its pursuit to emerge as an integrated global home textile company.

He further added that having completed two international acquisitions of Giuseppe Bellora and Divatex with combined revenues of about Rs 800 crore and the commencement or production at the Rs 400 crore bed linen facility, the company is positioned to achieve consolidated annualised revenues of over Rs 1,000 crore.

''We will continue to explore opportunities for inorganic growth in the branded home textile space.'' Company's Managing Director Dinesh Himatsingka said, ''Himatsingka will continue to create and strengthen its manufacturing capabilities in India while enhancing its global distribution strengths through acquisitions.''

UNI