Japanese Toray Industries has agreed to acquire shares in Hong Kong based Pacific Textiles Holdings to pursue its global strategic expansion and synergy effects through supply chain integration and collaboration. Toray has signed a share purchase agreement today to acquire 28.03 per cent stake in Pacific Textiles from Far East Asia Limited, a company solely owned by Ip Ping Im, a Director of Pacific Textiles, and from his wife, Ip for a total consideration of HK$ 4,053,940,000. Closing is expected to occur mid-July 2017.
Engaged in the manufacturing and trading of textile products since 1997, Pacific Textiles is now a leading manufacturer of customised knitted fabrics with a focus on complex, value-added fabrics, and says it has a high profit yield thanks to its enhanced operational efficiency and effective cost control measures. Its principal manufacturing facility is located in Panyu, China, and is well-equipped with advanced production facilities, including a scalable water treatment facility and cogeneration power plant. In addition, it also has a manufacturing plant in Vietnam.
Pacific Textiles and Toray have been developing new fabrics together, and Pacific Textiles has been indirectly supplying fabrics to Toray. “As a long-time partner of Pacific Textiles, Toray is ideally placed to work closely with Pacific Textiles,” the company reports. “Through this strategic investment, Toray expects to strengthen its business relationship with Pacific Textiles and further align the interests of the two groups. By leveraging Toray’s strengths in raw materials and Pacific Textiles’ value-added knitting services, both groups are positioned to innovate and improve products to their end clients, as well as penetrating into new geographies and adjacent segments.”