Blackstone Buys Stake in Indian Apparel Co.
BANGALORE – U.S.-based private equity firm The Blackstone Group has made a deal to buy a 50.1 percent majority stake in Gokaldas Exports Ltd., one of India’s largest apparel companies.
The founders of Gokaldas, who previously held a 70 percent share, will remain in leadership positions: Madanlal Hinduja as the chairman, Rajendra Hinduja as the managing director and Dinesh Hinduja as the executive director. According to the two companies, 20 percent more of the company will be acquired by Blackstone through an open offer triggered by the initial transaction. The total cost of Blackstone’s investment will be around $165 million.
Gokaldas is based in Bangalore, India, and was incorporated in 1979. The company’s 47,000 employees work on clothing for Gap, Nike, and Reebok, with a capacity of 2.5 million garments a month.
“With its global reach and deep relationships, Blackstone is an ideal partner to help us realize our vision of building a global industry leader.” Managing director Rajendra Hinduja said in a joint press release. “Blackstone is a long-term partner and intends to work with us to deepen our customer relationships and accelerate our growth plan. With Blackstone’s relationships across the world, our customer profile is likely to get a significant impetus. This is likely to take the company to a higher growth trajectory.”
