Interloop Limited (ILP), one of Pakistan’s largest textile exporters, has completed the acquisition of Top Circle Hosiery Mills Co., Inc., USA.
The textile giant shared the development in a notice to the Pakistan Stock Exchange (PSX) on Friday.
“We are pleased to convey that Interloop Limited (ILP) has successfully completed the proposed acquisition of 64% equity stake in the target company i.e., Top Circle Hosiery Mills Co., Inc. (Top Circle), USA, which is incorporated under the laws of United States of America, where it is registered,” read the notice.
In September, the Board of Directors of Interloop granted the company its approval to acquire the US company, which offers knitting machines and finishing equipment.
Top Circle has a hosiery manufacturing subsidiary in China as well.
“The proposed acquisition has been made after the execution of definitive transaction agreement(s) and securing all applicable corporate and regulatory approvals,” ILP said on Friday.
It said that with the completion of this acquisition, Top Circle will now operate as a subsidiary of ILP, with ILP owning 64% of Top Circle.
“This strategic move represents a significant milestone in our ongoing efforts to enhance shareholders’ value and strengthen our position in the global market and ultimately contribute to the long-term sustainability of our company,” said ILP.
Set up in 1992 in Faisalabad with 10 knitting machines. ILP, after a series of expansions, is a complete vertically integrated company with state-of-the-art spinning, yarn dyeing, knitting and finishing facilities. It is also one of the largest exporting firms in Pakistan and among the largest listed companies on PSX.
As per the company’s latest financial results, during the first quarter of FY24, ILP generated a gross profit of Rs12.75 billion from sales amounting to Rs38.5 billion.
This marked a significant increase from the corresponding period (1QFY23), with a rise of 26% in gross profit and 26.4% in sales, where the company earned a gross profit of Rs10.12 billion from sales of Rs30.46 billion