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:
+44 20 3663 2427