Gokaldas Exports to acquire Matrix Clothing's apparel biz for Rs 489 cr

Readymade garment manufacturer and exporter Gokaldas Exports (GEL) on Friday said it has signed a definitive agreement to acquire the apparel business of Matrix Clothing for an enterprise value of Rs 489 crore.

Through this deal, GEL will get access to the knit apparel business segments, a mutually exclusive global customer base, greater access to European and the UK markets, geographical diversification and low-cost capacity expansion potential in the future, according to a statement.

GEL inked a pact with Matrix Clothing Pvt Ltd (MCPL) to acquire 100 per cent of the equity share capital of Matrix Design & Industries for an enterprise value of Rs 489 crore, out of which Rs 247.5 crore is being paid by way of preferential allotment of shares of Gokaldas Exports through a share swap, the company said in the statement.

Matrix Clothing Group is a manufacturer of high-quality knitwear apparel for renowned brands with major geographical exposure to Europe, the UK, and North America.

The group operates out of Gurugram, Haryana, and has five manufacturing facilities (four in Gurugram and one in Ranchi, Jharkhand).

"We have always believed in continuously adding production capacity at strategic locations enhancing our value proposition to our valued customers. The acquisition of Matrix is an important step in this direction as it is strategically relevant, possesses a good complementary customer base, operationally strong, and above all, a leader in its own sphere," GEL Vice Chairman and Managing Director Sivaramakrishnan Ganapathi said.

Meanwhile, GEL reported a 25 per cent decline in consolidated profit after tax at Rs 30.4 crore during the quarter ending December 31, 2023, compared to Rs 40.6 crore in the year-ago period.

Its revenue grew by 6 per cent during the quarter under review at Rs 559.8 crore as against Rs 528.1 crore in the same period of the last year.