Himatsingka Seide acquires 70-per cent stake in Italian firm

Mumbai: Himatsinghka Seide, which signed a definitive agreement with Giuseppe Bellora SpA in January 2007, has completed acquisition of 70 per cent equity stake in the Italian firm.

Himatsingka acquired a 59.74 per cent stake at an enterprise value of €20 million (including €7 million of long-term debt). The stake was acquired from a private equity firm and the promoter family.

In addition, Himatsinghka infused an incremental €3.75 million as fresh equity to increase its stake to 70 per cent , the company said in a filing with the National Stock Exchange.

"We have funded the acquisition out of the GDR proceeds of $60 million raised in December 2005," Himatsingka said in its filing.

This acquisition is in line with the company's strategy of investing in luxury brands and distribution networks in the home textile space. In addition, the company believes that this acquisition has synergies with the greenfield bed linen project coming up at Hassan SEZ, Karnataka, at an investment of Rs400 crore, says Shrikant Himatsingka, executive director of the company.

Giuseppe Bellora has reported a consolidated top line of €29.8 million for the year ended December 31, 2006. The brand `Bellora` has a strong presence through exclusive stores, departmental stores and multi brand outlets across Europe.

Giuseppe Bellora also owns the brand `La Casa Italiana', a home textile brand through its subsidiary BP Venture. Mr Giuseppe Bellora, would continue to function as the managing director in the Italian company and hold 30 per cent equity in the firm.