KPS Capital Partners LP has announced that its portfolio company American & Efird (A&E) signed definitive agreements to acquire majority ownership of Vardhman Yarns and Threads Limited from its joint venture partner, Vardhman Textiles Limited. Upon completion of the transaction, A&E will own 89 per cent of the joint venture and Vardhman Textiles will own the other 11 per cent. The transaction has been approved by A&E and Vardhman Textiles, but remains subject to approval from the Competition Commission of India and other customary closing conditions.
Vardhman Yarns and Threads is India’s second largest manufacturer and distributor of premium quality industrial and consumer sewing thread.
Vardhman Yarns and Threads generated revenue of approximately $110 million in FY2015-2016, operates five manufacturing facilities, employs over 4,500 associates and sells some of the most-widely recognised industrial sewing thread brands in India.
Les Miller, Chief Executive Officer of A&E, said, “The acquisition of Vardhman Yarns and Threads accelerates A&E’s continued global growth and diversification.
Our long-standing blue-chip customer base, including leading global brands, multinational corporations and regional manufacturers, rely on A&E as a mission-critical supply chain partner. This acquisition further enhances our demonstrated ability to provide customers with the highest-quality thread and superior service around the world.
Vardhman Yarns and Threads’ excellent reputation, world-class operations and leading position in the Indian market will enable A&E to more fully benefit from both fast-growing domestic demand for high-quality products in India and increasing international demand for exports from India. A&E will invest significant capital and resources into Vardhman Yarns and Threads to continue to ensure the highest levels of product quality, environmental sustainability, technological innovation and customer service.â€Â
“We thank Vardhman Textiles for their continued valuable contributions to Vardhman Yarns and Threads’ success. The strategic partnership with Vardhman Textiles has been important to strengthening Vardhman Yarn and Threads’ leadership position in India and helped accelerate its growth trajectory. We look forward to our continued collaboration with Vardhman Textiles,†he added.