Hampshire Group has completed its purchased of Rio Garment, a Honduras-based apparel manufacturer.

Hampshire said yesterday (25 August), that it acquired the manufacturer, which designs, sources and produces knit tops for retailers and distributors in the US, for US$22.9m.

"Strengthening our potential for growth, Rio Garment diversifies our distribution channel with direct access to the fast-growing vertical speciality store channel," said CEO Heath Golden.

"At the same time, as we integrate Rio Garment, we foresee considerable cross-selling opportunities for both businesses. Further, the acquisition puts us on the leading edge of a strong industry trend toward migrating production back to the western hemisphere, from which additional unforeseen benefits are likely to come."

Rio reported $57m of net sales in 2010, and its largest customer is teen clothing retailer Aeropostale.

Rio general manager David Gren and his senior management team will continue to manage the day-to-day operations of Rio, reporting to Golden.

As part of the sale, Paul Buxbaum, CEO of the Buxbaum Group and Benjamin Yogel, managing director of Rio investor MRC Capital Group have joined Hampshire Group's board and Janice Page resigned from her position on the board.