INDIA BUSINESS WORLD - DECEMBER 16th - DECEMBER 31st
- 2007
WELSPUN ACQUIRES 76% STAKE IN PORTUGUESE CO
WELSPUN India, global major in terry towel making, has acquired 76% stake in Portugal-based Sorema-Tapates e Cortinas de Banho, SA (Sorema) for Rs 60 crore. The acquisition will realise significant synergistic benefits for both the companies considering their complementary strategies and business profiles, said the company in a statement.
Welspun had acquired 85% of UK's largest towel firm Chirsty in July 2006. Sorema is a leading player in bath rugs and shower curtains. The company's annual turnover was Rs 57 crore last year. It has a network spanning over 40 countries including the US, England, Spain and Germany.
After the acquisition, the existing Sorema management will continue to own the remaining 24% stake. Rajesh Mandawewala, joint managing director of Welspun India, has been appointed as the chairman of Sorema. As a consequence of the acquisition, Sorema will be the subsidiary of Welspun and all current employees will continue with the same terms and conditions of employment, said the company.
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