SP Apparel acquires Young Brand Apparel for Rs 223 cr

NewsDrum Desk
New Update

Mumbai, Feb 6 (PTI) Tamil Nadu-based apparel exporter SP Apparel on Tuesday said it will acquire 100 per cent equity of Young Brand Apparel, which manufactures inner wear brands like American Eagle and Jockey International, for Rs 223 crore.

This acquisition will bring in additional revenue of up to Rs 400 crore for the financial year 2025, the company said in a statement.

Young Brand is a subsidiary of Bannari Amman Spinning Mills.

Under a strategic acquisition initiative, SP Apparel plans to acquire a 51.33 per cent stake from Bannari Amman of Young Brand Apparel and the rest 49 per cent from joint venture partners.

The buyout includes the garment unit situated at the Bannari Amman Spinning Mills and the land and building situated at SIPCOT (The State Industries Promotion Corporation of Tamil Nadu) for a value of Rs 223 crore, the statement said.

To fund the acquisition, SP will leverage a combination of internal accruals and borrowed capital.

With this acquisition, SP will be able to diversify its product offerings and further expand its customer base and target markets. The land parcel is expected to boost SP's manufacturing capacity.

Young Brand manufactures intimate wear -brands like American Eagle, Jockey International, Marks & Spencer and Benetton. Its let export markets are the Britain, Canada,Japan, and the Japan, said P Sundararajan, the chairman and managing director of SP Apparel.

He further said the acquisition will help him diversify into other textile and apparel categories, further strengthen export basket, market presence, and build a more broad-based business model.

Young Brand reported revenue of Rs 329 crore for financial year 2023. PTI BEN MR MR