The Hindu Business Line : Himatsingka to buy 70% stake in Italy's Giuseppe

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Bangalore, Jan. 29 Himatsingka Seide Ltd on Monday announced it will be acquiring 70 per cent stake in Giuseppe Bellora, SpA, Italy, a leading brand with its own distribution outlets and presence in major European department stores such as Harrods, London, La Rinascente, Milan and Bonne Marche, Paris.

The company, while declining to disclose the details of the consideration to be paid for the acquisition, said the transaction is likely to be completed by the second week of February.

A company official told Business Line that after the acquisition, Giuseppe Bellora would be a subsidiary of Himatsingka, which would be making direct investments in the Italian company.

Established in 1883, the Bellora is a pan-European luxury brand in the bed linen segment, which accounts for 90 per cent of its business while accessories such as linen perfumes and other products also arepart of the product line.

Himatsingka had been looking for acquisition in line with high-end distribution networks in the global textile segment. Bellora came as a best fit with the Indian company also looking at increasing the market for its linen products.

Bellora generated a revenue of Euro 29 million. Himatsingka also announced that it would be investing Rs 400 crore in setting up an integrated bed linen manufacturing facility at the economic zone in Hassan in Karnataka with its trial production slated to start next month.

The company recorded a 26 per cent jump in its net profit for the third quarter of FY 2007 at Rs 15.07 crore on a total revenue of Rs 53.12 crore, which grew by 24 per cent at Rs 42.86 crore during Q3 of FY 2006.

Profit before tax rose by 34 per cent at Rs 20.99 crore against Rs 15.67 crore in the same period last year.

For the nine month period (April-December 2006) the company's net profit was up 25.3 per cent at Rs 45.71 during Q3 of current financial year ( Rs 36.47 crore ) on a total revenue of Rs 150.92 crore compared with Rs 121.12 crore during the same period last year.

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