SUMEC Successfully Acquires 25% Stake in BB in the US

2014-01-18 15:09:00 Print To share:

After more than a year of negotiations, SUMEC Textile and Light Industry Co., Ltd. acquired a 25% stake in Berkshire Blanket Holdings, Inc. (BB for short) in the United States for US$9.9 million. The stake was delivered on December 23, 2013. It is SUMEC's first overseas acquisition project, which means SUMEC made important achievements in SINOMACH’s strategic objective of international operations and improvement of global resource allocation.

After more than ten years of close cooperation between SUMEC Textile and Light Industry Co., Ltd. and BB since 2001, BB has become one of the most important mainstream customers of SUMEC Textile and Light Industry Co., Ltd., and SUMEC Textile and Light Industry Co., Ltd. has also become the most important partner and core supplier for BB, who was the top exporter of blankets from China to the U.S. for years.

Integrating global resources, improving international operating capabilities, and promoting transformation and modernization are important strategic objects for implementing growth effectiveness. Based on the actual business development situation, SUMEC Textile and Light Industry Co., Ltd. seized the rare opportunity to implement the investment and acquisition. In this way, SUMEC Textile and Light Industry Co., Ltd. has not only become the exclusive core supplier, which guarantees a prospective yield, but also has extended the marketing channels and has a self-owned brand in developed countries, which improves SUMEC’s competitiveness and sustainable development capability. As noted by Mr. Yang Yongqing, Vice President of SUMEC Group Corporation and President of SUMEC Textile and Light Industry Co., Ltd., the project is precious because it represents the first step to developing abroad and integrating core resources in the international market and demonstrates a positive effect for SUMEC’s future development.

The acquisition boosts the morale of BB employees, and they have high expectations for BB development. Because of the acquisition, banks have reduced the loan interest rate for BB, and BB creditors have relieved BB of nearly ten million US dollars of debt because they also anticipate better development at BB. All these changes reduce burdens and costs and improve profitability for BB. Needless to say, the assessment of BB’s value has obviously increased.

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