S Kumars acquires controlling stake in Italy's Klopman

8 May, 2008, 2113 hrs IST,Sudeshna Sen, TNN

LONDON: S Kumars, through its subsidiary, has just acquired a controlling stake in one of Italy's leading fabric manufacturers, Klopman, for an enterprise value of Euro 70 million ($ 107 mn).

MW Unitexx S.A. a wholly owned subsidiary of MW Corp, an S Kumars group company run by Mukul and Warij Kasliwal, bought the controlling stake from BS Private Equity, a leading, independent private equity player in Italy.

Klopman is a leading European manufacturer of textile for the work-wear, protective-wear and apparel industries. The company's fabrics are used for work-wear by companies as diverse as VW, Toyota, and Michelin to the German Red Cross, and others like Ikea.

Klopman recorded revenues of Euro 125 million in fiscal year 2007. Established in 1968 by Burlington of the US, the management over the years has passed to Italy.

The acquisition of Klopman gives MW Corp great consolidation opportunities in the international market, which has a total market size of over US$ 5 billion and grows at a 5 % per annum, leveraging on the distinctive and willing strength of a European brand and high technical value added fibers. As work-wear has been identified as a major growth area by MW Corp, there are very strong growth prospects for Klopman under the MW Corp umbrella.

Klopman represents a sound foothold in Europe to start further growth in western markets both organically and through acquisitions. MW Corp has interests in Textiles, Renewable Energy & Hydro Power and is spearheaded by brothers Mukul and Warij Kasliwal.

The MW Unitexx Group, the company said, has over 60 years of serving the uniform and work-wear market, and is an Indian player fully integrated from manufacturing of fabrics to finished garments and retail.

Klopman has production facilities in Italy and Tunisia, and distributes its products through its sales offices located in Dusseldorf, Lyon, Barcelona, UK, Moscow, Scandinavia, Poland and Milan.

BS Private Equity, along with IPEF III, purchased Klopman in 2004 from Galey & Lord (now Swift Galey). Since then, Klopman's management devised and implemented a strategy focused on selling high value added products, on reducing operating costs and on improving its production blueprint.

MW was assisted in the transaction by Meghraj SP Corporate Finance and their local Partner in the Global M&A network, Studio Legale Delfino e Associati Willkie Farr & Gallagher LLP, and Grant Thornton accounting.BS Private Equity was assisted in the transaction by Compass Rondelli Advisers (M&A advisory), NCTM (legal), Deloitte (accounting).

BS Private Equity is one of Italy's leading private equity firms, investing in manufacturing and service companies. It arranges management buy-outs and buy-ins. BS Private Equity has a total size of Euro 550 million.

VIA: E.T