Gokaldas Exports Ltd (GEL), a producer and exporter of ready-to-wear apparel, announced on Tuesday that it has reached a deal to buy Atraco Group for $55 million through one of its wholly-owned subsidiaries.
Atraco, a Dubai-based clothing manufacturer that employs a network of four factories in Kenya and one in Ethiopia, produces around 40 million garments a year, according to a statement from GEL. According to the statement, a combination of internal accruals and loans will be used to fund the transaction’s $55 million (about Rs 455 crore) equity value. The deal will involve the purchase of shares and assets and is subject to the usual regulatory approvals. It further stated that it will likely be finished by the third quarter of FY24 (October to December 2023). Because Atraco is strategically relevant, has a large complementary client base, is operationally strong, and is, above all, a leader, the acquisition of the company is a significant step in this direction.
“With this acquisition, we will have access to sites for production that are duty-free and affordable. Together, we can offer our international consumers a greater range of options and a better value. “We are excited to welcome over 13,000 new members (Atraco employees) into the GEL family,” stated Sivaramakrishnan Ganapathi, vice chairman and managing director of GEL. GEL now exports to more than 50 nations, with some of the most well-known global companies from North America, South America, Europe, Africa, Oceania, and Asia as its clients.
