Ever-Glory International Group Inc a leading apparel manufacturer in the People's Republic of China, announced that it has completed the acquisition of Nanjing Catch-Luck Garments Co Ltd.
The transaction was funded by a combination of $0.6 million in cash and $9.4 million in common stock. Upon completion of this transaction, Catch-Luck became a wholly-owned subsidiary of Ever-Glory.
"The acquisition of Catch-Luck increases our existing production capacity, expands our product lines and provides an additional source of revenue and income," said Mr. Yihua Kang, Chairman and Chief Executive Officer of Ever- Glory.
"We expect to achieve greater economies of scale in the areas of production, administration and purchasing as we integrate the operations of our two companies."
Catch-Luck is primarily engaged in the manufacturing and sale of garments to China, Europe, Japan and the United States. Founded in 1995, Catch-Luck has more than 500 non-union employees with annual production capacity of 1.2 million garment pieces.
It currently operates one factory spanning 6,000 square meters in the Nanjing Jiangning Economic and Technological Development Zone.
During the first half of 2007, Catch-Luck generated revenues of $9.7 million and net income of $1.2 million. Approximately 78% of revenues came from customers in Europe, 9% from customers in the U.S, 8% from customers in China and 4% from customers in Japan.
The transaction was funded by a combination of $0.6 million in cash and $9.4 million in common stock. Upon completion of this transaction, Catch-Luck became a wholly-owned subsidiary of Ever-Glory.
"The acquisition of Catch-Luck increases our existing production capacity, expands our product lines and provides an additional source of revenue and income," said Mr. Yihua Kang, Chairman and Chief Executive Officer of Ever- Glory.
"We expect to achieve greater economies of scale in the areas of production, administration and purchasing as we integrate the operations of our two companies."
Catch-Luck is primarily engaged in the manufacturing and sale of garments to China, Europe, Japan and the United States. Founded in 1995, Catch-Luck has more than 500 non-union employees with annual production capacity of 1.2 million garment pieces.
It currently operates one factory spanning 6,000 square meters in the Nanjing Jiangning Economic and Technological Development Zone.
During the first half of 2007, Catch-Luck generated revenues of $9.7 million and net income of $1.2 million. Approximately 78% of revenues came from customers in Europe, 9% from customers in the U.S, 8% from customers in China and 4% from customers in Japan.
