Indo Count Industries unit bought an 81% stake in Fluvitex USA

The only goal of Indo Count, a specialized end-to-end bedding provider, is to provide complete sleep experiences. Our enthusiasm and global perspective have enabled us to penetrate 49 markets, to add more each year. Several of the most well-known retail, hospitality, and fashion brands in the world choose to work with us as their preferred partner. We are quick to react, flexible, and provide solutions that improve the lives of our clients. We have laid a solid foundation over the last 25 years, upon which we have constructed a robust, profitable business. Only the best equipment from around the world is used in our state-of-the-art facilities as part of our mission to provide an exceptional sleep experience through bedding. Our competent and experienced staff also oversees each stage of the process, which includes product development and design, cotton sourcing, spinning, weaving, processing, cut-and-sew, branding, and marketing. Indo Count produces 14,000 tons of combed cotton yarn annually. In our three spinning facilities, we source the best cotton available from India and around the world, utilizing cutting-edge machinery and procedures. 59,520 spindles are available at Kolhapur, Maharashtra. To ensure that we consistently introduce designs and products that are in demand and relevant to the market, our design teams in Australia, the USA, the UK, India, and other countries stay up to date with the most recent industry information and trends.

Fluvitex USA business:

The Columbus, Ohio-based Fluvitex USA produces 1.5 million quilts and five million pillows a year. In FY23, the company reported a turnover of $28.26 million, with operations spread across the United States and Canada.

81% stake holding by Indo Count Industries Ltd

At a starting purchase price of $19.63 million, the acquisition was carried out through a stock purchase agreement with Masias Invest, S.L., a Spanish company. By September 2029, Indo Count will have the only right to purchase the remaining 19% of the company for a total of $24.23 million.

An announcement made to the stock exchange stated, “Indo Count Global has signed a definitive agreement for acquiring an 81% stake in Fluvitex USA, Inc. from its promoter shareholder, Masias Invest, S.L., with an exclusive option to purchase the remaining 19% stake within the next 5 years, i.e., by September 30, 2029.” The company claims that debt and internal accruals are used to finance the purchase. By September 30, 2024, the deal is expected to close.

Statement from Mr. Mohit Jain:

The Executive Vice Chairman, Mohit Jain, stated: “Indo Count must acquire Fluvitex to establish a comprehensive utility bedding business in the United States. “With Fluvitex’s state-of-the-art manufacturing facility and strategic location, we will be able to offer a greater variety of products to our North American customers.”

Indo Count Industries Ltd. stock is 2% up today:

Due to the $19.63 million purchase of an 81% stake in Fluvitex USA, the stock of Indo Count Industries Ltd. (ICIL) is currently trading at Rs. 409.95 per share.

Conclusion: This purchase is in line with Indo Count’s plan to grow its market share and distribution reach by entering the North American utility bedding market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.