Himatsingka Seide completes Bellora acquisition for Rs 116 crores

Bangalore-based silk fabric manufacturer Himatsingka Seide has concluded its 70% stake acquisition in Italian bed linen brand Giuseppe Bellora SpA. The valuation of the acquisition is €20 mn (Rs. 116 crores). The equity value of the transaction is €13 mn (Rs. 75.4 crores) while Bellora has a debt of €7 mn (Rs. 40.6 crores).

Established in 1883, Bellora has presence across leading European department stores along with brand stores. Himatsingka Seide plans to capture the value market taken by the retailers by opening Bellora stores in the US and European markets. Currently Bellora is retailed through 17 owned stores and 350 retail points.

In June 2006, Bellora closed down its own manufacturing facility for restructuring initiative. Henceforth the sourcing for the brand will be undertaken from Himatsingka’s production facility at Hasan, Karnataka, which has a manufacturing capacity of 200 mn metres.

Continuing its acquisition strategy, Himatsingka is in talks with other bed linen brands in the US and UK, which are expected to be completed in a couple of months. During the quarter ended December 2006, Himatsingka Seide registered total income of Rs. 53 crores with a net profit of Rs. 15 crores.

Read the article in Business Standard.
Related Post: Himatsingka to acquire majority stake in Italian textile brand Bellora

Himatsingka to acquire majority stake in Italian textile brand Bellora

Bangalore-based textile design and manufacturing firm Himatsingka Seide is acquiring 70% equity stake in Italian textile company Giuseppe Bellora SpA for an undisclosed amount. The transaction is expected to be completed in February 2007. The acquisition is part of Himatsingka’s strategy to acquire high-end distribution networks in the global home textile segment. Established in 1883, Bellora is a pan-European luxury brand in the bed linen segment and has generated revenues of about €29 mn in 2006. Apart from exclusive stores in Italy and other parts of Europe such as Spain, Portugal, Switzerland, Germany and France, the brand has a presence in departmental stores, like Harrods in London, La Rinascente in Milan, and Bonne Marche in Paris, among several others.

Read the article in The Economic Times.