Veltex Corporation on Monday acquired an undisclosed California-based textile distribution firm which will nearly double its revenues and improve its bottom line earnings as much as five fold.

Los Angeles-based Veltex said its new acquisition is a distributor of fabrics for apparel industries and importer of caps, T-Shirts, twill shirts, shorts and other ready-made garments products for promotional product industries.

It added the firm's manufacturing base is located in Bangladesh where it employs more than 300 people and benefits from quota-free imports to the US.

Veltex, which enjoyed pre-tax earnings of $1.9 million and revenues of $9.9m in 2001, said its new acquisition posted a 30 per cent jump in profit to $350,000 for the first half and its full-year revenue is expected to top $1m.