Toray Industries, Inc. has agreed to acquire shares in Pacific Textiles Holdings Ltd. of Hong Kong to pursue its global strategic expansion and synergy effects through supply chain integration and collaboration.
Toray is to acquire 28.03% of the stake in Pacific Textiles (comprising of 405,394,000 ordinary shares) from Far East Asia Limited, a company solely owned by Ip Ping Im, Director of Pacific Textiles, and from his wife, Ip for a total consideration of HK$4,053.94 million, representing a per share price of HK$10.00. The deal is expected to be closed in mid-July 2017.
Engaged in the manufacturing and trading of textile products since 1997, Pacific Textiles is a leading manufacturer of customized knitted fabrics with a focus on complex, value-added fabrics, and has a high profit yield thanks to its enhanced operational efficiency and effective cost control measures. Its principal manufacturing facilities are located in Panyu, China, and are well-equipped with advanced production equipment, including scalable water treatment facilities and cogeneration power plant. In addition, it has a manufacturing plant in Vietnam.
Pacific Textiles and Toray have been developing new fabrics together, and Pacific Textiles has been indirectly supplying fabrics to Toray. As a long-time partner of Pacific Textiles, Toray is ideally placed to work closely with Pacific Textiles. Through this strategic investment, Toray expects to strengthen its business relationship with Pacific Textiles, and further align the interests of the two groups. By leveraging Toray’s strengths in raw materials and Pacific Textiles’ value-added knitting services, both groups are positioned to innovate and improve products to their clients, as well as advancing into new geographies and adjacent segments.