Industry Archives: Textile and Apparel

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Bangladesh Vertically Integrated Garment Plant Available for Purchase

An EM focused Investment Bank has been mandated to structure and execute the sale of a family owned state of the art garment manufacturing unit. The Investment Bank is seeking strategic sector investors who may be interested in a strategic acquisition that would give them enhanced low cost production facilities and access to the Western brands that the Company currently serves.

The Company, located in Bangladesh, has been a family owned business from the start but the owner is approaching retirement. Due to the inability of his children to take over, it made strategic sense to look for an exit. The Company has a fully vertically integrated production platform and in terms of its garment range, these include some of the top international brands for both inner and outer wear. A teaser is available as well as more specific information later via a full Information Memorandum and valuation material, but would appreciate firstly guidance as to if there is indicative interest.

Some Core Attributes Include:

-Tax advantages for Foreign Investors due to Special Economic Zone (SEZ) location Chittagong

-Location: Located quite close to the largest port in Chittagong, Bangladesh and well connected by air through an international airport, 4 lane Dhaka- Chittagong by road.

-Low overhead & smooth production heaven: Chittagong Garment & textile operational costs are much lower than Dhaka and other cities of Bangladesh. Consistence work forces with average of 6 years experiences, congenial working environment during any political turmoil with minimum migration & absenteeism.

-Strong Profitability- The economies of scale and overall efficiency provided by a vertically integrated operation ensure better operating and net margins than the vast majority of our client’s peers who run stand alone operations.

-Long standing relationships with clients: 100% of the Group’s revenue comes from clients who have been with Company for over 6 years with nearly 70% coming from clients of over 10 years. This demonstrates a strong working relationship between the Group and its clients which include leading brands in the West (with Germany and the USA being by far the largest markets)..

-Low energy cost: Natural gas has been used as the main energy source in both the client’s RMG & Textile zone for industries, and is significantly cheaper source compared to electricity and diesel.
Uninterrupted power supply: Both RMG & Textile Zone equipped with 3 power sources as alternative back up (Gas, Diesel, Govt electric supply) which is a unique strength for export manufacturing Industries.

-Effluent treatment plant (ETP): RMG-Washing & Textile – Denim dyeing plant 100% runs with Live & active ETP operation to protect environmental code of ethics.

-Production Flexibilities : The client’s garment production complex has got significant expertise of producing all kinds of Bottom wear, Jeanswear, Outerwear, Jacket, Underwear, Lingerie, Casual wear with high quality balanced machineries & equipment.

-Compliance & Building – fire safety: All RMG units are certified by WRAP, BSCI,SEDEX,& ISO. All production complexes built with state of art Building technology & fire safety code by certified engineer & proper approval authority.

For more information contact:
Nova Capital
Sajeev Chakkalakal
[email protected]
+44 20 3663 2427

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Change Capital buys Italian luxury linen brand Frette

MILAN, July 15 (Reuters) – Private equity group Change Capital Partners has bought a majority stake in Italian luxury linen maker Frette for an undisclosed sum, aiming to revive sales at the brand that has kitted out royalty, top hotels and oceans liners. Change Capital said it would inject cash into Frette to help the company to grow.

JH Partners, Frette’s U.S.-based owners, will retain a minority stake in the business. The financial details of the deal were not disclosed. Founded in 1860 and based in Monza, near Milan, Frette had consolidated sales of 90 million euros in 2013 through stores in Paris, Moscow, New York and Hong Kong.

Frette earned its reputation supplying luxury fabrics to the Titanic, Orient Express, Vatican and European aristocracy, as well as top hotels, liners and restaurants.

Change Capital estimated the global luxury bed linen market at more than 1.2 billion euros and said this market would benefit from the continued growth in emerging market customer demand. London-based Change Capital also said it had identified Italy as one of its main growth markets. Its recent deals there have included the takeover of restaurant group Vesevo, since renamed Sebeto, which also owns the pizzeria-chain Rossopomodoro.

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Nordic Capital buys majority stake in clothing chain Gina Tricot

STOCKHOLM, June 9 (Reuters) – Private equity firm Nordic Capital said on Monday it had agreed to buy a majority stake in Gina Tricot from the Appelqvist family, the founders of the Swedish clothing retailer who will retain a significant stake in the company. Gina Tricot has 180 stores in Sweden, Norway, Denmark, Finland and Germany and had sales of around 2 billion Swedish crowns ($302 million) last year, but in recent years sales have declined slightly, hit by tough market conditions.

Nordic Capital did not disclose the purchase price nor the size of the stake acquired. “Under Nordic Capital’s ownership, Gina Tricot will gain access to a pool of capital and extensive experience of the retail market, leaving the company well positioned to execute on a new strategic plan,” Nordic Capital said in a statement. Nordic Capital will also inject new capital to boost Gina Tricot’s financial position.

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Fashion house Versace sells stake to Blackstone to fund growth

MILAN, Feb 27 (Reuters) – Italian fashion house Versace is selling a 20 percent stake to U.S. private equity firm Blackstone (BX.N) for 210 million euros ($287 million), aiming to fund new shops and build on a recent recovery in sales before an eventual stock market listing. Continue Reading →

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India Fashion Portal Myntra Raises $50M On A $200M Valuation As Amazon And Flipkart Circle

India’s e-commerce market is projected to grow sevenfold to $22 billion in the next five years, and investors and global e-commerce companies want to have a piece of the action. We have learned that Myntra, one of the bigger fashion portals in the country focusing both on traditional and more western fashion, has closed a $50 million round of funding. Continue Reading →

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Skip Hop, Maker of Children’s Gear, Sells Majority Stake to Equity Firm

NY Times Deal Book
A maker of children’s gear, including popular backpacks with cartoon characters, is planning to grow — with the help of a private equity firm. Continue Reading →

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Polyester Fiber Manufacturer in Argentina

This Company was founded in 1959 by the father of current Chairman and shareholder of the company. It started producing filament and staple of nylon and polyester, competing with some domestic manufacturers as DuPont, which manufactured nylon fiber and rodhia polyester yarn. Continue Reading →

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Moncler says it has sold sportswear division

MILAN, Nov 8 (Reuters) – Luxury down jacket maker Moncler has sold its sportswear division to a company controlled by private equity fund Emerisque Brands, it said on Friday without giving financial details of the transaction. Continue Reading →

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Asian consortium in exclusive talks to buy Italy’s Bruno Magli

MILAN, Oct 30 (Reuters) – Italian luxury leather goods brand Bruno Magli said on Tuesday its hedge fund owner Fortelus has begun exclusive talks to sell the entire company to a consortium of Asian investors. Continue Reading →

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At least 7 potentially bidding for Versace stake

Oct 11 (Reuters) – At least seven potential buyers are in the running to bid for a minority holding in Italian fashion house Versace, which plans to sell a 15-20 percent stake to fund growth, sources close to the talks told Reuters on Friday.
Versace’s financial advisers, Banca IMI and Goldman Sachs “have told a small group of investors that they can proceed with the bidding process”, one source said.
The investors considering buying the stake include Italy’s state-controlled fund FSI, Bahrain’s Investcorp, and private equity firms Ardian, Permira, KKR & Co, Clessidra and Blackstone, the sources said.
FSI, Ardian, Clessidra and Blackstone declined to comment. Investcorp, Permira and KKR were not immediately available to comment.
One source said the fashion house, known for its tight-fitting dresses sported by Lady Gaga and Madonna, had not yet drawn up a shortlist of potential partners, and was unlikely to do so before the December holiday season.
Chief Executive Gian Giacomo Ferraris said in September Versace planned to finalise a shortlist by mid-October.
One source said potential bidders had been told that the deadline for expressions of interest in buying the stake was Nov. 30, but this was subject to change.
Versace is entirely controlled by the family of late founder Gianni Versace, whose sister, creative director Donatella Versace, owns 20 percent of the company, brother Santo 30 percent, and niece Allegra 50 percent.

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