Sri Lanka-based Hayleys Fabric Plc has purchased 98.84 percent equity stake of South Asia Textiles Limited for a consideration of US $28 million. South Asia Textiles is a pioneer in weft knit fabric manufacturing and specializes in knitting, dyeing, finishing, printing, bushing, and sueding pre-shrunk fabric for numerous foremost global brands.
Hayleys bought 97.68% stake from Ambeon Holdings and 1.16 percent share from a smaller shareholder. The purchase ‘supports Hayleys Fabric Plc’s strategic plan to expand capacity for higher value-added fabrics for exports by aligning with world class tier-1 brands under its portfolio of customers,’ said AM Pandithage, Chairman, Hayleys Fabric in a corporate revelation with the Colombo Stock Exchange.
Since its inception in 2004, South Asia Textiles produces for leading global brands such as Victoria Secret, Next, Marks & Spencer, Tesco, Calvin Klein, Decathlon and Adidas.
Hayleys Fabric, which began operations in 1992, is known as an excellent fabric manufacturer with a high degree of innovative capabilities with its own brand, Inno.
The company has an annual turnover of $72 million with a capability of delivering over 3 million metres of fabric per month. It is listed on the Colombo Stock Exchange having a total asset value of $48 million.
