Chinese apparel manufacturer Ever-Glory International Group has closed the acquisition of Nanjing New-Tailun Garments Company.
New-Tailun is mainly engaged in the sales and manufacturing of casual wear, sportswear, jeans and trousers for middle-high well-known brands and retail chain stores in Japan, the United Kingdom, Europe, and the United States. New-Tailun generated revenues of US$9.7 million and net income of US$1.0 million for the nine months ended December 31, 2006. Over the same period, sales to customers in Japan and the United Kingdom accounted for 45% and 19% of total revenues, respectively.
The acquisition was funded by a combination of cash and stock valued at approximately US$12 million. To close the transaction, Ever-Glory will pay the seller the equivalent of US$2 million in Renminbi and issued approximately 20.8 million shares of its restricted common stock. Upon completion of this transaction, New-Tailun Company became a wholly owned subsidiary of Ever-Glory.
"New-Tailun is an excellent fit with our existing operations as it increases our geographic reach in Japan and further expands our jeans wear product line. It also gives us the opportunity to apply our successful experience in quality control and cost management," commented Yihua Kang, President, CEO and Director of Ever-Glory. "This acquisition marks an important step in our growth strategy. We plan to continue expanding our premier customer base, both organically and through acquisitions in our quest to become the leading apparel manufacturer in China."
Ever-Glory International Group is a U.S. publicly traded company that cooperates with garment retailer chains such as Itochu, Shinko, Debenhams, Next, C&A, Ito Yokado and others in handling high and middle grade casual-wear and sportswear. The company has entered into production and sale cooperation agreements with a number of internationally famous brands such as Matalan, Eddie Bauer, Best-Seller, BB Dakota and others. The company employs about 1,500 people.