Veltex Buys Bangladesh Garment Maker
Veltex Corp., City of Industry, Calif., has acquired Bangladesh-based garment manufacturer
KCA Garment Industries in a cash-plus stock deal.Veltex said the acquisition will increase its
production capabilities to make it competitive in the warehouse store and mass merchandiser
marketplace.According to Veltex, the acquisition will allow its Velvet Textile Mills subsidiary,
also located in Bangladesh, to supply woven fabrics to KCA.The finished garments by KCA will then
be imported to and distributed in the United States by its Veltex Apparel subsidiary.KCA employs
about 750 people and operates a 30,000-square-foot manufacturing and warehouse facility in the city
of Dhaka. It had 2003 revenues of $14.1 million. Veltex said the KCA management team will remain in
place.
Spring 2004