GHCL eyeing second soda ash acquisition in Romania

GHCL is considering acquisition of Romanian soda ash maker Uzinele Sodice Govora (USG). This transaction, once materialized, will be GHCL’s second buyout in that country after its takeover of a 300,000 tonne soda ash company SC Bega Upsom SA in December 2005. USG is a 200,000 tonne soda ash producer. It has mortgaged its assets with GHCL to tide over its financial crisis. The proposed acquisition is part of the company’s target to quadruple its capacity to 4 mn tonnes by next year.

The company is also in talks with soda ash companies in China and the US which are likely to be over by June. In addition to soda ash, GHCL is also eyeing acquisition of home textile retail chains in Europe and the US to become an integrated home textiles company with presence across spinning, weaving, designing, sourcing and distribution.

In the last one-and-a half years, GHCL has spent about $165 mn (Rs. 730 crores) on foreign buyouts. The list includes UK-based largest home textile retail chain company Rosebys with 300 stores, and the US-based textiles company Dan River.

Read the article in Business Standard.

GHCL unit buys US firm HW Baker Linen for $6.75 mn

GHCL has acquired HW Baker Linen from US-based Best Manufacturing Goup for $6.75 mn, through a competitive bidding process. The acquisition was made through GHCL’s step-down subsidiary Dan River, Inc. HW Baker supplies textile products, amenities and guest room supplies to hotels and motels across USA, and had revenues of about $70 mn last year. This is fourth acquisition closed by GHCL over the last one year. It had earlier acquired Rosebys, a home textile retail chain in the UK, soda ash maker SC Bega Upsom in Romania and Dan River, a textile company in the US.

Read The Economic Times and Business Standard for more details.