Indo Count Industries Ltd which is a reputable homegrown exporter of bed sheets, bed linen and quilts, has made its second overseas acquisition within a month acquiring US-based Modern Textiles Inc. A manufacturer of pillows and other filled products, Mumbai-listed Indo Count will buy Modern Home for USD 11.7 Million which is about INR 98.4 Crore at current exchange rates.
This second deal comes less than a month after Indo Count had acquired an 81 percent stake in Fluvitex USA Inc. The latter company was bought for USD 19.63 Million and is another pillow and quilt manufacturing company based out of Columbus, Ohio.
In the filing last month, Indo Count said that it will also acquire the remaining 19 percent shares of Fluvitex for USD 4.6 million in the span of five years; thereby taking the total deal value to USD 24.23 million.
Fluvitex was incorporated in 2016 and had been a part of Masias Invest, S.L, which is a Spanish textile machinery firm that has been in existence since 1944. However, Modern Home is of a more recent vintage and was incorporated in the year 2023. Also to note, the purchases of Modern Home, which is registered in Delaware and has a factory in Phoenix, Arizona will add an annual capacity to produce 8 million pillows for Indo Count.
Furthermore, Fluvitex’s acquisition will also add a capacity of 5 million pillows and 1.5 million quilts to Indo Count’s portfolio. If we look at the turnover of Fluvitex in FY23, it stood at USD 28.6 million. Indo Count has highlighted that these back-to-back acquisitions will greatly help it build an integrated utility bedding business in the North American market.
Hence, with these two acquisitions, the total manufacturing capacity for Indo Count in the US will stand at 13 million pillows and an additional capacity of 1.5 million quilts.. And, if we speak of full capacity, the total expected revenue will stand at USD 85 million.
Indo Count was set up 25 years ago and is being spearheaded by Anil Kumar Jain - Promoter and Executive Chairman, Mohit Jain - Vice Chairman, and Kailash R Lalpuria - Chief Executive Officer.
Also to add, Indo Count owns a retail arm in India in the name of Indo Count Retail Ventures Pvt Ltd. This retail arm manages the home textiles brand ‘Boutique Living.’ Also, the company operates across varied verticals in the textiles space which encompasses spinning, weaving and processing.
