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Taiwan’s apparel maker Quang Viet to buy stakes in King Hamm

Image Courtesy: dcu.ie

Garment manufacturing firm Quang Viet Enterprise Co Ltd. will reportedly be acquiring a share (42 per cent) in King Hamm Industrial Co. Ltd. Both the companies are based in Taiwan.

King Hamm supplies swimwear and some of its renowned clients are globally renowned brands like Under Armour Inc. and North Face Inc.

The transaction will cost Quang Viet US $ 11.4 million approximately.

Quang Viet plans to buy 13.65 million shares at US $ 0.03 per share. This was announced by the garment manufacturer in a Taiwan Stock Exchange filing.

The investment is expected to not only allow Quang Viet keep pace with the industry trends but also help the company to diversify its production facility in Vietnam where King Hamm operates two manufacturing units.

Notably, Quang Viet is globally the second largest supplier of down jackets to fashion giants like Adidas and Nike.

Additionally, the company had recently reported that it intends to purchase 60 per cent stake in Atlanta Garment Manufacturing Co., which is a Jordan-based knitwear manufacturer.

The deals made by Quang Viet with both Taiwan- and Jordan-based manufacturing units, if finalized, are expected to increase its sales by 15 per cent in the year 2018.

On the other hand, King Hamm hopes to note a revenue of US $ 17 million while Atlanta Garment expects its revenue to be between US $ 35 million and US $ 40 million.