Gokaldas Exports Limited announced that it has signed an agreement with Matrix Clothing Private Limited to acquire 100 per cent of the equity share capital of Matrix Design & Industries Private Limited for an enterprise value of Rs 489 crore, out of which Rs 247.5 crore is being paid by way of preferential allotment of shares of Gokaldas Exports through share swap.
The Matrix Clothing group is a manufacturer of men’s, ladies’, and children’s knitwear apparel for renowned brands with major geographical exposure to Europe, the UK, and North America. The group operates out of Gurgaon, Haryana and has five manufacturing facilities (4 in Gurgaon, Haryana and 1 in Ranchi, Jharkhand).
Through this deal, GEL receives access to the knit apparel business segments, a mutually exclusive global customer base, greater access to European and the UK markets, geographical diversification and low-cost capacity expansion potential in the future.
Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports Limited, said, “We are very excited to welcome Matrix’s leadership team, and their employees to the GEL group. We have always believed in continuously adding production capacity at strategic locations enhancing our value proposition to our valued customers. The acquisition of Matrix is an important step in this direction as it is strategically relevant, possesses a good complementary customer base, operationally strong, and above all, a leader in its own sphere.”
GEL was supported by JM Financial Limited as transaction advisor, Anagram Partners as legal advisor and the BDO India team as the partner for due diligence.
Gokaldas Exports Limited also declared its financial results for the quarter ended December 31, 2023. The company reported a consolidated revenue of Rs 559.8 crore for the quarter compared to Rs 528.1 crore in the same quarter last year and a consolidated profit before tax of Rs 43.5 crore compared to Rs 47.8 crore in the previous year Q3 FY23.
Sivaramakrishnan Ganapathi said, “Our performance reflects a good recovery, both on a YoY and sequential basis, as we have overcome most of the business headwinds prevalent in the previous quarters. We intend to build on the revival and conƟnue the growth momentum. We will stay focused on improving operating parameters and remain confident in the medium to long term prospects of the company.”