Hayleys Fabric Plc, a pioneer in weft knit fabric manufacture in Sri Lanka, has acquired 98.84 per cent equity stake of South Asia Textiles Limited for a consideration of Rs 3,953,361,887.
Colombo-headquartered South Asia Textiles specialises in knitting, dyeing, finishing, printing, bushing, and sueding pre-shrunk fabric for several leading global brands.
Hayleys purchased 97.68 per cent stake from Ambeon Holdings and 1.16 per cent share from a minority shareholder. The acquisition “supports Hayleys Fabric Plc’s strategic plan to expand capacity for higher value-added fabrics for exports by aligning with world class tier-1 brands under its portfolio of customers,” Hayleys Fabric chairman AM Pandithage said in a corporate disclosure with the Colombo Stock Exchange.
South Asia Textiles, which commenced its commercial operations in 2004, produces for leading global brands such as Victoria Secret, Next, Marks & Spencer, Tesco, Calvin Klein, Decathlon and Adidas.
Hayleys Fabric, which commenced operations in 1992, is recognised as a world-class fabric manufacturer with a high degree of innovative capabilities with its own brand, Inno. The company has an annual turnover of $72 million with a capability of delivering over 3 million metres of fabric per month. It is listed on the Colombo Stock Exchange having a total asset value of $48 million.