Himatsingka Seide completes acquisition of 70% in Giuseppe Bellora SpA, Italy

Himatsingka Seide Ltd has announced that the Company has completed the acquisition of a 70% equity stake in Giuseppe Bellora SpA, Italy. This is consequent to the signing of definitive agreements in January 2007.

The Company acquired a 59.74% stake at an enterprise value of Euro 20 MM (including Euro 7 MM of long-term debt). The above stake was acquired from a PE firm and the promoter family. In addition, it infused an incremental Euro 3.75 MM as fresh equity to increase its stake to 70%.

This acquisition is in line with the Company's strategy of investing in luxury brands and distribution networks in the home textile space. In addition, the Company believe that this acquisition has synergies with the Greenfield bed linen project coming up at Hassan SEZ, Karnataka, at an investment of Rs 400 crores, says Shrikant Himatsingka, Executive Director, of the Company.

Giuseppe Bellora SpA has reported a consolidated top line of Euros 29.8 MM for the year ended December 31, 2006. The brand "Bellora" has a strong presence through exclusive stores, departmental stores and multi brand outlets across Europe. Giuseppe Bellora SpA also owns the brand "La Casa Italiana", a home textile brand through its subsidiary BP Venture. Mr. Giuseppe Bellora will continue as the Managing Director and hold 30% of the equity in the Company.

The Company funded the acquisition out of the GDR proceeds of USD 60 MM raised in Dec 2005.

Source : Equity Bulls

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