Ever-Glory completes Catch-Luck acquisition

CHINA: Ever-Glory completes Catch-Luck acquisition

Author: just-style.com | 7 September 2007

Apparel manufacturer Ever-Glory International Group has completed the acquisition of Nanjing Catch-Luck Garments.

The transaction was funded by a combination of $0.6m in cash and $9.4m in common stock.

"The acquisition of Catch-Luck increases our existing production capacity, expands our product lines and provides an additional source of revenue and income," said Yihua Kang, chairman and CEO of Ever- Glory.

"We expect to achieve greater economies of scale in the areas of production, administration and purchasing as we integrate the operations of our two companies."

China-based Catch-Luck makes garments including casual wear, sportswear, jackets, trousers and shorts for sale in China, Europe, Japan and the US.

It was founded in 1995 and has more than 500 non-union employees with annual production capacity of 1.2m garment pieces. It currently operates one factory spanning 6,000 square metres in the Nanjing Jiangning Economic and Technological Development Zone.

During the first half of 2007, Catch-Luck generated revenues of $9.7m and net income of $1.2m. Approximately 78% of revenues came from customers in Europe, 9% from customers in the US, 8% from customers in China and 4% from customers in Japan.

Sectors: Apparel, Manufacturing

Companies: Ever-Glory