Veltex Corporation (VLXC)

[Growth And Value]

USA: Veltex Buys Bangladeshi KCA Garment Industries
05 Feb 2004
Source: just-style.com





Veltex Corporation subsidiaries Veltex Apparel and Velvet Textile Mills have acquired Bangladeshi firm KCA Garment Industries in a cash plus stock deal.

The purchase, for which Velvet Textile Mills will supply the cash portion, is expected to make Veltex competitive in the lucrative membership warehouse store and mass merchandiser marketplace.

Through the deal, Velvet will produce woven textiles for KCA to manufacture into shirts, pants and other garments, cutting out middleman costs.

Veltex Apparel, in turn, will import and distribute the garments, further cutting costs and resulting in a price advantage for the corporation.

KCA will also receive common stock as part of the deal.