Clothing label and tag maker SML Group has taken over competitor KalPak International and all of its international subsidiaries.

The deal, for which financial details were not revealed, will see all KalPak operations will be renamed to SML/Kalpak.

According to SML CEO Simon Suen, the acquisition will benefit the Hong Kong-based company in a number of areas.

"It greatly increases our existing manufacturing operations in Central and South America, and in the Carribean," he said.

"It also strengthens our position as a leader in the branded label and tag manufacturing industry and enhances our growing US presence, especially on the East Coast."

KalPak president Rob Kaliner will remain with the new company, as will all of the existing management team.