GHCL completes divestment of home textiles business for Rs 608 crore

Chemicals major GHCL on Saturday said it has completed the divestment process of its home textiles business for Rs 608.30 crore and formally transferred the business to Indo Count Industries. Besides, Grace Home Fashions LLC (GHF), a US subsidiary of GHCL, has completed the sale of specified assets (inventory and intellectual property) to Indo Count Global Inc in accordance with the terms of Assets Transfer Agreement (ATA), said GHCL in a regulatory filing.

"The company has successfully completed the divestment of its Home Textile business by way of slump sale on April 2, 2022, in accordance with the terms of Business Transfer Agreement (BTA)," it said. Hence, effective from April 2, 2022, the home textiles business of the company situated in Bhilad (Vapi), Gujarat, has been formally transferred to Indo Count Industries and ownership of GHCL has been ceased, it added.

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"The total consideration for divestment of the home textiles business has been calculated at Rs 608.30 crore," said GHCL. Sharing the details, GHCL said the BTA transaction has been completed for a total lump sum consideration of Rs 558.60 crore, which will be subject to validation of customary closing date adjustment of working capital in terms of the agreement.