Veltex Corporation (VLXC)

[Growth And Value]

More details on the KCA Acquisition if you are interested.

USA: Veltex Signs Letter Of Intent To Buy Bangladeshi KCA
23 Jan 2004
Source: just-style.com




Apparel, textile and transport group Veltex Corporation has signed a letter of intent to purchase Bangladeshi shirt maker KCA Garment Industries.

The California-based company, which counts KCA as a customer, hopes to reduce the cost of finished goods imported for local resale as a result of the acquisition.

As part of the prospective sale, for which financial details have yet to be finalised, Veltex will inherit KCA’s long-standing customer relationships with distributors and buyers.

KCA is one of the largest shirt manufacturers in the Dhaka region with 750 employees and total revenue of US$14.1 million in 2003.

The company sources denim, khaki, twills and pinpoint oxford fabrics from Veltex subsidiary Velvet Textile Mills.