Apparel maker Ever-Glory International is on track to buy Nanjing Catch-Luck Garment Company after signing a Letter of Intent.

Ever-Glory expects to close the deal, which would help bulk up its earnings, within 60 days.

The transaction would make Catch-Luck, which is valued at more than US$4m, a majority or wholly-owned subsidiary of Ever-Glory.

Ever-Glory president and CEO Edward Kang said: "We are excited about the opportunity to grow our business in a new direction with the acquisition of Nanjing Catch-Luck Garment Company Limited.

"This transaction represents another significant step toward achieving our goal of dynamic growth through new products and synergistic acquisitions."

The company projects an extra $16.5m in full-year revenues from the deal.

Ever-Glory International said earlier this week it plans to set up a factory in the Nanjing Jiangning Economic and Technological Development Zone.