Latvia based fabric manufacturer Lauma Fabrics has acquired German textile group LE Textile.

Lauma said the deal, for an undisclosed sum, will allow both companies to "use more opportunities thus ensuring competitiveness in the future".

The group is also hoping to attract new clients in Western markets through the purchase, as well as obtain know-how and additional production capacities. In addition, the acquisition will strengthen Lauma's positions in the CIS countries.

"Lauma Fabrics and LE Textile will establish an integrate strategy in order to develop a modern and innovative production that is able to offer to their clients original products of high quality for competitive prices," the company said.

LE Textile is one of the leading producers of elastic textile materials in Europe, present under the Elastic brand name. Its clients include major European lingerie producers and it employs around 75 staff.

In 2013, Lauma recorded a turnover of EUR32.6m (US$44.4m). Its investments in production development for the period amounted to EUR3.4m.