Welspun India Ltd, manufacturer of terry towels, has acquired a 76-per cent stake in Portuguese bath rug major Sorema for Rs 60 crore.
The companies have also signed an agreement for marketing products exclusively in Spain and Portugal as well as in other European countries, a Welspun release said today.
With the acquisition, Welspun would now have facilities in India, Mexico, Portugal and the UK. The deal would also help both companies have stronger brand and market presence, extension of product offerings and management synergies.
“The acquisition would lead to enhanced presence in branded business through Sorema brands as well as Welspun's owned and licenses brands like Nautica and Umbra,” the company said.
As part of the acquisition, the existing Sorema management would continue to own the remaining 24 per cent of the issued share capital and would operate the company on a stand-alone basis.
“We are looking at leveraging Sorema's know-how through product development and marketing skills,” Welspun Joint Managing Director Rajesh Mandawewala said.
Mandawewala has been appointed Chairman of Sorema, which would now be a subsidiary of Welspun.
Welspun had acquired 85 per cent of UK's largest towel company Christy last year.
Source: Trading Markets