Kasliwals led textile major S Kumars Nationwide is close to buying out an Italian shirt company for â¬75 million (Rs 475 crore). The deal to acquire the unnamed firm is expected to be finalized by next month according to this report.
This would be S Kumars second overseas deal within the last four months. In May, it had acquired a controlling stake in Italian fabric manufacturer, Klopman International. S Kumars has already approached some banks to partly finance the deal and some foreign banks have informally agreed to bankroll the transaction as per the report. The promoters, however, said that the funds have already been tied up and it is not looking to go to any bank to raise funds for the acquisition.
In July this year S Kumars raised $220 million(Rs 900 crore) from Singapore's sovereign wealth fund GIC who picked 25.4 percent in its subsidiary Reid & Taylor, which plans to open 341 stores across the country by 2009-10. This followed a QIP at S Kumars last year.
Even as domestic textile firms have been facing tough times as export orders dwindle, S Kumars reported revenues of Rs 535.15 crore for the quarter ending June'08, a growth of 41.1 percent, while profit after tax rose 29 percent to hit Rs 55.09 crore. The firm has been refocusing its business towards high value products.