Indian readymade garment manufacturer and exporter Gokaldas Exports Ltd has announced its plans to acquire a Dubai-based apparel manufacturer Atraco Group for $55 million.
The acquisition is expected to yield favourable outcomes for both top-line and bottom-line growth.
The transaction of around Rs 455 crore 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), Gokaldas Exports said in a statement.
Gokaldas Exports’ vice chairman and managing director, Sivaramakrishnan Ganapathi, said: “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.”
Founded 30 years ago in 1986, the apparel manufacturer 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.
Currently, Gokaldas Exports exports to more than 50 countries and its customers include international brands in North America, South America, Europe, Africa, Oceania and Asian countries.
It operates more than 20 manufacturing facilities, complemented by five integrated ancillary units.
