Ever-Glory International Group Inc, a leading apparel manufacturer in the People's Republic of China (PRC), announced that it closed the acquisition of Nanjing New-Tailun Garments Co Ltd (New-Tailun) effective December 30, 2006.
New-Tailun is mainly engaged in the sales and manufacturing of casual wear, sportswear, jeans and trousers for middle-high well-known brands and retail chain stores in Japan, the United Kingdom, Europe, and the United States. New-Taillun generated revenues of US$9.7 million and net income of US$1.0 million for the nine months ended December 31, 2006. Over the same period, sales to customers in Japan and the United Kingdom accounted for 45% and 19% of total revenues, respectively.
The acquisition was funded by a combination of cash and stock valued at approximately US$12 million. To close the transaction, Ever-Glory will pay the seller the equivalent of US$2.0 million in Renminbi (RMB) and issued approximately 20.8 million shares of its restricted common stock. Upon completion of this transaction, New-Tailun Co Ltd became a wholly owned subsidiary of Ever-Glory.
"New-Tailun is an excellent fit with our existing operations as it increases our geographic reach in Japan and further expands our jeans wear product line. It also gives us the opportunity to apply our successful experience in quality control and cost management," commented Mr. Yihua Kang, President, CEO and Director of Ever-Glory.
"This acquisition marks animportant step in our growth strategy. We plan to continue expanding our premier customer base, both organically and through acquisitions in our quest to become the leading apparel manufacturer in China."
Ever-Glory International Group
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