"Samina was the joint venture partner of Sadhrta in India. In order to expand our retail footprint overseas, we thought of acquiring Samina, a retailer and producer of sleeping systems across the globe," Intelligent Business System CEO Kaustubh Chokshi said.
Samina produces and retail all kinds of sleeping systems like mattresses, pillows and others, he said.
Intelligence Business Systems is a software product company. Sadhrta has already acquired a 50 per cent ownership stake of Samina in Germany for Euro 2 million. The acquisition procedure would be completed in the next 18 months, he said.
"With this acquisition, the company would open 20 additional retail outlets in Germany, named as Sadhrta Samina," he said.
Sadhrta also has the rights to open the Samina brand of stores globally, he said.
According to the deal, following the acquisition Sadhrta will set up a central sales office that will transact with all countries except Austria, Germany and Switzerland.
In countries such as Turkey, where Samina already has franchisee outlets, Sadhrta will continue with them, Chokshi said.
"Since franchisees are already in place, Sadhrta will not extract a margin and the economics for all parties will remain unaffected. It will charge a small handling fee to cover costs," he added.
