NEW DELHI: Tamil Nadu-based S P Apparels (SPAL) has signed an agreement to acquire 100% stake of Young Brand Apparel Private Limited (YBAPL) along with garment unit situated at Palladam of Bannari Amman Spinning Mills and land and building situated at SIPCOT (State Industries Promotion Corporation of Tamil Nadu) for a value of Rs 223 crore.
Under a strategic acquisition initiative, SPAL plans to acquire a 51.33% stake from Bannari Amman of Young Brand Apparel Private Limited and undertake to acquire 49% stake in YBAPL from joint venture partners. To fund this acquisition, SPAL will leverage a balanced combination of internal accruals and borrowed capital.
Incorporated in December 2006, YBAPL manufactures Intimate Wear for brands like American Eagle, Jockey International, Marks & Spencer and Benetton. The company exports to countries like the US, UK, Japan, and Canada. YBAPL reported a revenue of Rs. 329 crore for the financial year ended on March 31, 2023.
P Sundararajan, Chairman and MD, S P Apparels, said, “YBAPL will improve cross-sell synergy in terms of customer base and product offerings, as we are working towards penetrating the US market. The acquisition will not only strengthen our export spread but also lay a strong foundation for sustainable and resilient business growth for us.”