Welspun acquires UK''s top towel brand, Christy

03 July 2006

The Welspun group has acquired an 85 per cent in CHT Holdings Ltd, the holding company of the UK's leading towel brand Christy, valuing it at £15.6 million (Rs132.6 crore).Christy will now become a subsidiary of Welspun and all the current employees will continue with the same terms and conditions of employment.

Founded in 1851, Christy is the world's oldest towel manufacturer and is the UK's leading towel brand with an annual turnover of £35 million (Rs300 crore). Christy invented the first loom to mechanically weave what remains today the basis of the modern towel and is the sole supplier of the world famous Wimbledon Championship tennis towel.

The acquisition of Christy is in keeping with Welspun's strategy of emerging as the one of the largest global home textile company by 2008 with a strong brand portfolio. Other brands owned or licensed by it include Tommy Hilfiger for India and Nautica and Umbra for the US and Canadian markets.

The existing Christy management team will continue to own the remaining 15 per cent of the Christy issued share capital and will operate Christy on a stand-alone basis, with the exception of Rajesh Mandawewala, joint managing director, who has been appointed chairman of Christy.

From 1 April, 2009, the Welspun and the Christy management will be able to exercise a put / call option, calculated on a formula based upon FY08 and FY09 EBITDA, to buy / sell the 15 per cent equity interest retained by the existing Christy management.

In addition to manufacturing Christy branded product, the company also manufactures and imports a wide range of own label products for leading retailers. Across the UK, Christy has established long-standing relationships with premium retail stores including Marks and Spencer, John Lewis, House of Fraser, Selfridges and Debenhams.

The UK company has a strong retail presence of its own and operates 98 concessions, principally with House of Fraser and Debenhams, plus 22 stand-alone Christy branded stores. Outside the UK, Christy is available in leading retailers across the world such as Lane Crawford in Hong Kong, Karstadt in Germany and Bloomingdales in the US.