Sarasavi Exports Limited – a Sri Lankan supplier to major high street retailers in the UK has acquired French origin intimate apparel designer, manufacturer and distributor DB Apparel Group’s brand Isabella Limited for approximately Rs. 650 million. The combined production results will make Sarasavi one of the largest producers of tights and socks in Sri Lanka. Following the acquisition, Sarasavi Exports Limited can contract supply products to DB Apparel Group through a product buy-back-agreement. The transaction could facilitate the impending takeover of DB Apparel by Hanesbrands Inc. USA and secures the employment benefits of 800 workers at Isabella’s plants in Katunayake and Kundasale. “We are excited at the opportunities that will be available to Sarasavi, such as utilization of FTA with India and the pending FTA with China, subsequent to the acquisition of DB Apparel Group by Hanesbrands Inc and are fully prepared to accept the challenge of lowering the cost of production while maintaining existing quality standards,” said Hemantha Kumara, Chairman and MD, Sarasavi Exports.
