Veltex Buys Bangladesh Garment Maker

Veltex Buys Bangladesh Garment Maker
Veltex Corp., City of Industry, Calif., has acquired Bangladesh-based garment manufacturer KCA Garment Industries in a cash-plus stock deal.Veltex said the acquisition will increase its production capabilities to make it competitive in the warehouse store and mass merchandiser marketplace.According to Veltex, the acquisition will allow its Velvet Textile Mills subsidiary, also located in Bangladesh, to supply woven fabrics to KCA.The finished garments by KCA will then be imported to and distributed in the United States by its Veltex Apparel subsidiary.KCA employs about 750 people and operates a 30,000-square-foot manufacturing and warehouse facility in the city of Dhaka. It had 2003 revenues of $14.1 million. Veltex said the KCA management team will remain in place.
Spring 2004