Clothing maker Jeantex Group has signed a deal to acquire the majority ownership of high-end apparel designer Yves Castaldi.

Jeantex will buy 51% ownership of Yves Castaldi for ten million shares of Jeantex restricted common stock and $650,000 in cash, which includes provisions for Yves Castaldi's working capital.

The ten million shares will be vested on a pro-rated basis, based on a minimum of US$10.0m in revenues and $2.5-$3.0m in net profit generated by Yves Castaldi in the next twelve months.

Based in California, Yves Castaldi designs and markets high-end apparel under the Just Yves, I Generation and Instinct Yves brands.

The Company's founder, Yves Castaldi, is best known as having spent several decades as a stylist and collections designer for major European and American brands, including Diesel, Levi's Europe, and Buffalo.

Castaldi currently designs the premium denim collection in Europe for People of the World. He will continue with the company as lead designer for Just Yves, I Generation, Instinct Yves, and other fashion labels.

Yves Castaldi's fashion labels can be found in upscale department stores and boutique stores in the US and Europe.

Just Yves is a women's luxury fashion brand with a collection of trousers, jackets, shirts, skirts, dresses, vests and tops.

I Generation is a premium denim brand for men and women. Its product offering includes denim trousers, shirts, jackets, T-shirts, and handbags.

Jeantex chairman Henry Fahman said: "We have an incredible opportunity to increase the Yves Castaldi brand presence and product collection in specialty stores and department stores throughout the US and abroad.

"Yves' design and marketing expertise will prove invaluable to us as we continue to grow our store distribution and our capabilities.

"We remain focused on diversifying our product offering and will continue to create value for our shareholders as we build our business."

Yves Castaldi, founder and lead designer of Yves Castaldi Corp, said: "I look forward to working with the Jeantex team to build upon the growth momentum they've created, sharing their infrastructure and manufacturing expertise to accelerate the reach of the Yves Castaldi brand."

Jeantex designs, develops, manufactures and markets consumer products for the apparel markets worldwide. The company also manufactures and markets new lines of uniquely designed high-quality jeans, T-Shirts, and accessories under the Bone People trademark, which are being marketed in Germany, Japan, Portugal, Scandinavia, Spain, and the US.

The group announced a range of new apparel manufacturing contracts this week for names including Samsung, TMI Holdings, ROPE, Yves Castaldi, Stronghold Jeans, John Deere and Rhonda Jean Marc.