Sarasavi Exports acquires Isabella, largest producer of hosiery products in Sri Lanka
View(s):Sarasavi Exports (Pvt) Ltd, a supplier to major high street retailers in the UK, has acquired Isabella (Pvt) Ltd from the DBApparel Group, a market leader in branded intimate apparel and hosiery in Europe. The value of the net assets acquired is approximtely Rs. 650 million, the new owner said in a media release.
DBApparel, headquartered in France, owns 15 world renowned brands of which DIM and Nur Die, produced in Sri Lanka, are market leaders in their segments with a strong presence in France, Germany, and the Czech Republic.
The release said that the acquisition results in Sarasavi Exports contracting to supply products to DBApparel Group through a product buy back agreement. “The transaction could facilitate the impending takeover of DBApparel by Hanesbrands Inc USA and secures the employment benefits of 800 workers at Isabella’s plants in Katunayake and Kundasale. The deal was structured and concluded by M Power Capital who provided the financial advisory and risk mitigation strategy for Sarasavi Exports,” the release said.
Commenting on the deal, Hemantha Kumara, Chairman and Managing Director, Sarasavi Exports, said, “This transaction allows Sarasavi Exports to establish itself as the premier exporter of hosiery products and socks from Sri Lanka and positions the company to take advantage of the free trade agreement with India and the pending free trade agreement with Peoples Republic of China. We intend to increase production capacity by investing in automation and product development to cater to new export markets. We are excited at the opportunities that will be available to Sarasavi subsequent to the acquisition of DBApparel Group by Hanesbrands Inc and are fully prepared to accept the challenge of lowering the cost of production while maintaining existing quality standards”.