Mumbai: Readymade garment manufacturer and exporter Gokaldas Exports Ltd (GEL) on Tuesday said it has entered into an agreement through its wholly-owned subsidiaries to acquire Atraco Group for USD 55 million. Headquartered in Dubai, apparel manufacturer Atraco operates with a network of four manufacturing units in Kenya and one in Ethiopia producing about 40 million garments annually, GEL said in a statement.
The equity value of the transaction is USD 55 million (around Rs 455 crore) and the same will be funded by a mix of debt and internal accruals, it said.
The transaction will consist of the acquisition of shares and assets and will be subject to customary regulatory approvals. It is expected to be completed by the third quarter of FY24 (October-December 2023), it added.
“The acquisition of Atraco is an important step in this direction as it is strategically relevant, possesses a good complementary customer base, is operationally strong, and above all, a leader in its own sphere.
“With this acquisition, we will gain access to low-cost duty-free locations for manufacturing. Together, we can deliver a wider choice and value proposition to our global customers. We look forward to welcoming over 13,000 new members (employees of Atraco) into the GEL family,” GEL Vice Chairman and Managing Director Sivaramakrishnan Ganapathi said.
Currently, GEL exports to more than 50 countries where its customers include prominent international brands in North America, South America, Europe, Africa, Oceania and Asian countries.
The company has over 20 manufacturing facilities, complemented by five integrated ancillary units.
