Spanish textile maker Tavex Algodonera has announced it will buy a 70 per cent stake in German textile distributor Avantex.

As part of the acquisition, Avantex will transfer its exclusive rights to distribute licensed products in Germany, as well as its distribution networks in Europe, the Middle East and Africa, to Tavex.

Tavex, meanwhile, will place the production facilities, customer base and distribution network of subsidiary Tejidos Tecnicos under Avantex management.

While details of Tavex's actual investment have not been revealed, the company said it expected to post a EUR4 million turnover from distribution commissions in fiscal 2004 as a direct result of the acquisition.

For the first nine months of 2003, the Spanish manufacturer posted a net profit of EUR5.2m, down from EUR8.36m in the same period a year earlier.