Hayleys Fabrics, a Sri Lanka-based Hayleys Group’s circular knitted fabrics unit, has announced to buy a 98.84 per cent shareholding in South Asia Textiles Limited which is a well-known weft-knitted textiles manufacturer.
The deal is worth US $ 28 million.
According to Hayleys, it bought a 97.68 per cent stake from publicly traded Ambeon Holdings Limited and another 1.16 per cent from a minority shareholder. “The acquisition was part of a strategic plan to export higher value-added fabrics,” reports the company.
It’s worth noting here that South Asia Textiles has been on expansion spree for last couple of years and it has invested more than US $ 7 million to install the latest knitting technology of tech giants such as Italy’s Santoni and Singapore’s Unitex.
The investment also included new printing machines and finishing equipment from Stork, Santex and Fong’s.
South Asia Textiles has a unit in Pagoda, Sri Lanka and the unit can produce 800,000 kilograms of textiles of various types per month.