Spanish denim manufacturerTavex Algodonera has signed an agreement to acquire two plants in Mexico for US$62.0m, according to local reports.

AFX news reported that Tavex would pay US$42m to the plant owners and US$20m to US company Tarrant under the agreement.

Tavez, which posted a 35% boost in Q1 profit this month, is reportedly beginning operations at the plant next week (4 June).