Gokaldas Exports Ltd has agreed to acquire Dubai-based apparel manufacturer Atraco Group for an equity consideration of $55 million to expand its global presence.
The transaction will comprise of acquisition of shares and assets and will be subject to customary regulatory approvals, Gokaldas said in a stock-exchange filing. It expects to close the deal during the October-December quarter.
Atraco was founded in 1986 and is headquartered in Dubai, where it has its marketing, sourcing, product development and corporate functions. It operates four manufacturing units in Kenya and one in Ethiopia, producing about 40 million garments annually. It has more than 13,000 workers.
Atraco Group reported revenue of about $107 million and a profit after tax of $7.2 million for the calendar year 2022.
“We have always believed in continuously adding production capacity at strategic locations... With this acquisition, we will gain access to low-cost duty-free locations for manufacturing,” said Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas.
Shares of Gokaldas jumped 20% to close at a one-year high of Rs 736.30 apiece on the BSE on Tuesday.
Nilgiri Dairy Farm
Future Consumer Ltd said Tuesday its board decided to sell wholly owned subsidiary The Nilgiri Dairy Farm Pvt. Ltd to AVA Cholayil Healthcare Pvt. Ltd, the owner of Medimix brand, for Rs 67 crore ($8.1 million).
The deal includes the sale of Nilgiri’s franchisee operations, retail trade operations, sourcing, processing, packaging and marketing of dairy products, bakery products, fast-moving consumer goods, staples and other products.
The company will get 60% of the amount at the time of closing the deal and the remaining in two equal tranches.
Nilgiri recorded revenue of Rs 39.66 crore for the year ended March 31, constituting 10.40% of the consolidated turnover of Future Consumer.