Gokaldas Exports to buy Matrix Clothing’s apparel business for Rs 489 crore

Gokaldas Exports to buy Matrix Clothing’s apparel business for Rs 489 crore

The acquisition is seen as a means of achieving geographical diversification and potential low-cost capacity expansion in the future.

Gokaldas Exports announced the finalisation of an agreement to acquire 100% equity in Matrix Design & Industries. According to the agreement, the enterprise value for this acquisition amounts to Rs 489 crore.

It was disclosed that Rs 247.5 crore of the total consideration will be transferred through the preferential allotment of Gokaldas Exports’ shares via a share swap. This strategic deal is anticipated to provide Gokaldas Exports with entry into the knit apparel business segments, an exclusive global customer base, and increased market access in Europe and the UK. Additionally, the acquisition is seen as a means of achieving geographical diversification and potential low-cost capacity expansion in the future.

Sivaramakrishnan Ganapathi, Vice Chairman & Managing Director, Gokaldas Exports, emphasised the significance of the Matrix acquisition in fulfilling the company’s objective of enhancing production capacity strategically. He noted, “It is strategically relevant, possesses a good complementary customer base, operationally strong and above all, a leader in its own sphere.”

The Matrix Clothing Group, situated in Gurugram, Haryana, operates in the men’s, ladies, and children’s knitwear apparel sector, catering to renowned brands. The group has a substantial presence in Europe, the UK, and North America, with five manufacturing facilities—four in Gurugram and one in Ranchi, Jharkhand.

Alongside the acquisition announcement, Gokaldas Exports shared its December quarter results. Ganapathi expressed confidence in the company’s future, stating that they have overcome most of the business challenges faced in previous quarters. He added, “We will stay focused on improving operating parameters and remain confident in the medium-to-long term prospects of the company.”

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