Himatsingka Seide set to acquire US home linen brand

18 July 2007

Mumbai: Silk fabrics and home furnishing maker Himatsingka Seide Ltd. is close to acquiring a US bed linen brand to boost its overseas retailing business, sources close to the developments said.

The agreement could be reached in less than a month, they said without naming the brand.

"We are looking at a branded business in the US home textile space," the company''s chief financial officer Rajesh Kunnath said.

The US brand has sales of about $50-60 million and an enterprise value of about $30 million. Its products are distributed by premium retailers such as Bloomingdale''s, the sources said.

J P Morgan is advising Himatsingka on the deal, sources said.

If the deal goes through, it would be the company''s third acquisition in the current year. Himatsingka bought 80 per cent of US distributor Divatex Home Fashions earlier this month and 70 per cent of Italian retailer Giuseppe Bellora SPA in January.