As of Monday, May 16, 2016
Two giant thread makers are getting together.
American & Efird—the largest U.S. manufacturer of industrial and consumer thread, embroidery thread and technical textiles—is acquiring a majority ownership of Vardhman Yarns and Threads Ltd. from its joint-venture partner, Vardhman Textiles Ltd.
Vardhman Yarns and Threads is India’s second-largest manufacturer and distributor of industrial and consumer sewing thread. In fiscal year 2015–2016, the company operated five manufacturing facilities with 4,500 employees and had approximately $110 million in revenue.
When the transaction is completed, A&E will own 89 percent of the venture and Vardhman Textiles will own the other 11 percent.
“The acquisition of Vardhman Yarns and Threads accelerates A&E’s continued global growth and diversification. Our long-standing blue-chip customer base—including leading global brands, multinational corporations and regional manufacturers—rely on A&E as a mission-critical supply-chain partner,” said Les Miller, A&E’s chief executive, in a statement.
Miller noted that the acquisition will help A&E meet demand for high-quality products in India and increasing international demand for exports from India.
A&E, a KPS Capital Partners portfolio company, will invest significant capital and resources in Vardhman Yarns and Threads to ensure environmental sustainability, technological innovation and customer service.
A&E, which owns or operates 27 manufacturing facilities and employs more than 10,000 associates around the world from its corporate headquarters in Mt. Holly, N.C., said it expects the transaction to be completed by this summer.