Gokaldas Exports to acquire Matrix Clothing for Rs 489 crore

Gokaldas Exports Limited, an apparel manufacturer has signed an agreement with Matrix Clothing Private Limited to acquire 100 percent of the equity share capital for Rs 489 crore ($61 million).

As per the agreement, Rs 247.5 crore will be paid by way of preferential allotment of shares of Gokaldas Exports through share swap.

With this deal, Gokaldas Exports will gain access to European and the UK markets, geographical diversification and low-cost capacity expansion potential in the future.

Commenting on the deal, Sivaramakrishnan Ganapathi, managing director of Gokaldas Exports Limited in a statement said, “We are very excited to welcome Matrix’s leadership team, and their employees to the GEL group. We have always believed in continuously adding production capacity at strategic locations enhancing our value proposition to our valued customers.”

“The acquisition of Matrix is an important step in this direction as it is strategically relevant, possesses a good complementary customer base, operationally strong, and above all, a leader in its own sphere,” he added.

The Matrix Clothing group is a manufacturer of men’s, ladies’, and children’s knitwear apparel for brands with major geographical exposure to Europe, the UK, and North America. The group has five manufacturing facilities 4 in Gurgaon and 1 in Ranchi.