Himatsingka Seide Limited has completed the acquisition of a 100% stake in DWI Holdings. This was consequent to signing definitive agreements in New York on October 18, 2007, a press release from the company said. Himatsingka acquired the stake through its wholly-owned subsidiary Himatsingka America.
This acquisition follows the acquisitions of Giuseppe Bellora in February 2007 and Divatex Home Fashions in July 2007. The acquisition of DWI is in line with Himatsingka’s strategy to forward integrate by acquiring high-end brands and large distribution networks in the home textile space.
The enterprise value for the transaction was $30 million. For the fiscal 2007, DWI reported revenues of $47 million.
Headquartered in Atlanta, Georgia, DWI has the licences for the sourcing, marketing and distribution of luxury home textile brands – Calvin Klein, Barbara Barry and Royal Sateen. These brands are amongst the most prestigious and recognized home textile labels in the North American market with Calvin Klein being the second largest luxury bedding brand distributed through departmental scores in the US. In addition, the hospitality division of DWI caters to the unique needs of five star and deluxe properties around the world.
Shrikant Himatsingka, executive director of Himatsingka Seide said: “The three acquired entities will collectively contribute Rs 1,100 crore in annual revenue. The acquisitions have been made at reasonable valuations and will be accretive to us. In addition, they will consume the entire capacity of the recently commissioned Rs 400 crore bedding facility. The group now has five strong brands under its fold and is exploring the opportunity of bringing them to India and other Asian markets. The revenues from our global distribution arms coupled with strong retail growth will position us to achieve Rs 1, 200 -1300 crore in revenues next year.