Indo Count Industries Ltd, a homegrown exporter of bed sheets, bed linen and quilts, has made its second overseas acquisition within a month by buying the US-based Modern Home Textiles Inc.
Mumbai-listed Indo Count will buy Modern Home, a manufacturer of pillows and other filled products, for $11.7 million (about Rs 98.4 crore at current exchange rates), it said in a stock-exchange filing.
The deal comes less than a month after Indo Count acquired an 81% stake in Fluvitex USA Inc, another pillow and quilt manufacturing company based in Columbus, Ohio, for $19.63 million.
Indo Count said in a filing last month that it will acquire the remaining 19% shares of Fluvitex for $4.6 million over the next five years, taking the total deal value to $24.23 million.
Incorporated in 2016, Fluvitex had been a part of Masias Invest, S.L., a Spanish textile machinery firm that has been in existence since 1944. Modern Home, however, is of a more recent vintage, having been incorporated only in 2023.
The purchase of Modern Home, which is registered in Delaware and has a factory in Phoenix, Arizona, brings with it an annual capacity to produce 8 million pillows.
Fluvitex’s acquisition added a capacity of 5 million pillows and 1.5 million quilts to Indo Count’s portfolio. Fluvitex’s turnover for FY23 was $28.26 million.
Indo Count said that these back-to-back acquisitions would help it establish an integrated utility bedding business in the North American market.
With these two acquisitions, the total manufacturing capacity in the US will be 13 million pillows and an additional capacity of 1.5 million quilts annually, Indo Count said. At full capacity, the total expected revenue is $85 million.
Indo Count was set up 25 years ago and is led by promoter and executive chairman Anil Kumar Jain, vice chairman Mohit Jain and chief executive officer Kailash R Lalpuria.
In India, it owns a retail arm, Indo Count Retail Ventures Pvt Ltd, which manages the home textiles brand ‘Boutique Living.’ The company operates across several verticals in the textiles space including spinning, weaving and processing.