Welspun buys 85% stake in UK based Christy

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Welspun buys 85% stake in UK based Christy

Welspun India has bought 85% stake in UK-based Christy. Vice Chairman and MD, BK Goenka says that they will be buying 85% stake in the first phase and they have a call option for the remaining 15%, over the next three years.

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Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See latest News about Welspun India See previous management interviews See what other Experts & Brokerages are saying about Welspun India

Welspun India has bought 85% stake in UK-based Christy. Vice Chairman and MD, BK Goenka says that they will be buying 85% stake in the first phase and they have a call option for the remaining 15%, over the next three years.

He further adds that Christy is a debt free company with a number one brand name and it is a number one towel company in the UK, which will give Welspun a major presence in the UK market.

Excerpts from CNBC-TV18's exclusive interview with BK Goenka:

Q: Could you give us some details about the synergies with Christy?

A: This is a company called Christy from UK and it is more than 150 years old and they are primarily in Towels. They are the first company in the world who manufactured towels on a mechanical loom. It is having a good brand image and we are going to have technical support also.

Q: How much did you pick up that company for and how is the acquisition going to be funded?

A: In the first phase, we are acquiring 85% of the company and the total enterprise we did was Rs 135 crore and 15% we have put in a call option in the next three years.

Q: Globally, you are present in more than 45 countries and as a consequence of this acquisition, how do you see synergies pan out, going forward?

A: Christy today is primarily present in UK and the US and definitely they have 75% market share in towels in UK. So it will be giving us a major presence in the UK market, as they are the number one brand and the number one Towel Company in UK.

Q: Any debt that the company has?

A: It is a debt free company and we are going to acquire 85% with a mix of debt and internal accruals.

Q: How soon is the acquisition going to be done and completed?

A: We are signing the whole thing today and so today onwards, it will be on.