Textile solutions provider Alok Industries has bought a 60% stake in Czech fabric maker Mileta International.

India-based Alok signed a Memorandum of Understanding (MoU) with Mileta, allowing it to take ownership of all of Mileta's brands including Mileta, Erba, Cottonova, Lord Nelson, Wall Street, Osaka and Erbelle as well as Mileta's Licensee rights for Daks handkerchiefs.

Moreover, Alok is looking to take an additional 19.6% stake in the firm.

The deal, which is valued at EUR13.96m (US$17.72), will give it Alok a leg up into the European market. Most of its exports currently go to the US.

The company expects the transaction to take three months.
"This acquisition is aimed at making further inroads into the growing European market and strengthening our presence in the fashion-conscious apparel and home textile segments," said Dilip Jiwarajka, managing director of Alok.