Veltex Corporation (VLXC)

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How about this one?

Veltex Corporation Announces Acquisition of Garment Manufacturer - Qualifies to Sell to Membership Warehouse Stores

Distribution Source : PRNewswire

Date : Wednesday - February 04, 2004



CITY OF INDUSTRY, Calif., Feb. 4 /PRNewswire-FirstCall/ -- Veltex Corporation , announced today that its subsidiaries, Veltex Apparel and Velvet Textile Mills, have completed the acquisition of KCA Garment Industries of Dhaka, Bangladesh in a cash plus stock deal that is expected to make Veltex competitive in the lucrative membership warehouse store and mass merchandiser marketplace. Through this acquisition Veltex production capabilities will meet volume requirements of these stores, and its price advantage is expected to prove exceptionally attractive. Contracts to supply a single garment purchase to Costco and Sam's Club generally start at 5-million to 10-million pieces or approximately $20-million.

Under the agreement, the cash portion of the acquisition will come from Velvet Textile Mills and KCA will receive VLVT common stock. Velvet Textile Mills will produce woven textiles for KCA to manufacture into shirts and pants as well as other garments, cutting out the cost of middlemen. Veltex Apparel will import and distribute the garments, again cutting out costs normally incurred by other apparel companies, resulting in a significant price advantage for Veltex over competition. Current KCA Garment Industries management will remain in place and current KCA customers will accrue to Veltex.

http://press.arrivenet.com/bus/article.php/232599.html


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