GHCL to acquire third-largest US textile company
26 December 2005
Textiles and soda ash producer GHCL Ltd has entered into a definitive agreement through its overseas subsidiary for acquiring 90 shareholding or more, in the US-based Dan River Inc, the third-largest manufacturer of home textiles with a turnover of approximately $250 million.
The Indian company has reportedly signed an initial agreement to buy Dan River, $100 million for the Virginia-based home fashion and fabric maker. The company, which had earlier filed for bankruptcy under Chapter 11, came out of it in February this year.
GHCL is also in negotiations with various entities, though these are yet to crystallise.
The Indian company has already announced an investment of Rs220 crore and is in the process of setting up a weaving unit with a capacity of 13,000 metric tonnes in Umargam.
Dan River is a sheet and fabric maker headquartered in Danville, TN. On December 13, the company announced its intention to close two plants and transferring operations to other locations to more efficient plants within the US.