Weft knit manufacturer Textured Jersey Lanka PLC (TJL), will be going ahead with its acquisition of fabric printer Quenby Lanka Prints (Private)Limited (Quenby Lanka) as informed in February, according to an announcement to the Colombo Stock Exchange.
Following a valuation and due diligence, a purchase price of US$ 3.5 million has been agreed upon between the related parties. Brandix Lanka Limited and Trust Family Industries Inc. own 50 percent each in Quenby Lanka.
A Board of Investment company, Quenby Lanka is situated at the Seethawaka International Industrial Park in close proximity to TJL.
TJL said that the location, as well as their past working relationship would further improve capacity optimization and margin improvement through synergies.
TJL is also in negotiations to acquire the knit fabric manufacturer Ocean India (Pvt) Ltd based in Visakhapatnam, India, having already familiarized
its staff at the Indian plants though a technical service agreement.
Brandix Lanka has significant shares in Ocean India and 30 percent of the shares in TJL. Pacific Textured Jersey Holdings Limited is the largest equity holder with 40 percent of the shares in TJL.