Indo Count Industries Ltd arm to acquire Modern Home Textiles, Inc.

Indo Count Industries Ltd., the largest global bed linen player, announced another strategic move to broaden its Utility Bedding segment.

Indo Count Global, Inc. (ICG), a U.S. based wholly owned subsidiary of Indo Count Industries has acquired 100% stake in Modern Home Textiles, Inc., manufacturer of wide range of pillows and other filled products (Utility Bedding) having its facility located at Phoenix, Arizona with an annual capacity to produce 8 mn. pillows.

ICG also acquired last month majority stake in Fluvitex USA, Inc., a pillow and quilt manufacturing company based in Columbus, Ohio which has the capacity to produce 5 mn. pillows and 1.5 mn. quilts. This back-to-back acquisition is a stepping stone to establish an integrated utility bedding business for the North American Market. These acquisitions have diƯerent locations one in Midwest and the other one on the West Coast thus providing an eƯicient distribution base to both existing and prospective customers.

Mr. Anil Kumar Jain, Executive Chairman, commented, "We are delighted to have Modern Home Textiles in the ICIL Group. This strategic acquisition will not only accelerate Indo Count's ambition to grow the Utility Bedding segment but also significantly enhance its capabilities and market reach. Modern Home Textiles brings innovative sustainable solutions in the utility bedding segment allowing us to serve our customers better and enable us to further expand our US presence. Our investments over the last few months in the USA underscore our commitment to creating more employment opportunities and further strengthen our brand."

With these two acquisitions, the total manufacturing capacity in USA will be 13 mn. Pillows and an additional capacity of 1.5 mn. Quilts annually. At full capacity, the total expected revenue is USD 85 mn. plus. The Customer base in both Fluvitex and Modern Home Textile are not overlapping, thus providing a strong projected growth. These investments by Indo Count Global, USA are part of a larger plan to build significant capacities in pillow manufacturing to service the utility bedding customers in North America.

Shares of Indo Count Industries Limited was last trading in BSE at Rs. 361.45 as compared to the previous close of Rs. 356.90. The total number of shares traded during the day was 7085 in over 584 trades.

The stock hit an intraday high of Rs. 362.30 and intraday low of 352.00. The net turnover during the day was Rs. 2540961.00.

Source : Equity Bulls

Keywords

IndoCountIndustries INE483B01026 IndoCountGlobal Acquisition ModernHomeTextiles