Gokaldas Exports Limited (GEL) is set to strengthen its global footprint with a strategic acquisition worth US $ 55 million thereby taking over Atraco Group (Atraco), a prominent apparel manufacturer known for its robust market presence and extensive customer relationships spanning the United States and Europe.
Atraco’s product portfolio encompasses a wide range of clothing, including shorts, pants, shirts, T-shirts, blouses, and dresses, catering to various age groups. The company, founded in 1986, boasts a remarkable three-decade legacy of regional leadership in the apparel industry.
Headquartered in Dubai, UAE, Atraco conducts its marketing, sourcing, product development, and corporate functions, operating through a network of four manufacturing units in Kenya and one in Ethiopia, churning out approximately 40 million garments annually. Atraco’s core strengths lie in its relentless focus on cost efficiency, an emphasis on profitability and scale, substantial sales and marketing expertise, access to low-cost duty-free manufacturing locations, and long-standing customer relationships.
In terms of financials, Atraco Group reported revenue of approximately US $ 107 million in the calendar year 2022, with a post-tax profit of US $ 7.2 million. The company employs over 13,000 workers spread across multiple locations in Kenya, Ethiopia, and the UAE.
The equity value of this acquisition stands at US $ 55 million and will be financed through a combination of debt and internal accruals.
Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports Limited, expressed his enthusiasm about the acquisition, stating, “We are very excited to welcome Atraco’s admirable leadership team, their employees, and their global customers to GEL.” He emphasised that this strategic move aligns with GEL’s goal of expanding production capacity at strategic locations to enhance its value proposition for customers. The acquisition of Atraco is seen as strategically relevant, offering a complementary customer base and operational strength. Moreover, it provides access to low-cost duty-free manufacturing locations.
With this acquisition, GEL aims to offer an expanded choice and enhanced value proposition to its global customer base, as it eagerly welcomes over 13,000 new members into the GEL family.
