Three Portuguese mills merge
Home & Textiles Today Staff -- Home Textiles Today, May 17, 2011
Guimarães, Portugal - Home textiles mills Coelima, António Almeida & Filhos and José Machado Almeida have been acquired by Fundo de Reestruturação (Restructuring Fund) and formed into a new holding company called More Textile, according to a report today in Publico.
The fund holds an 85% stake in More Textile, which shareholders of the three mills owning the remaining 15%.
Collectively, the mills do about $142 million in annual sales and employ roughly 2,000 workers. Management of More Textile will be "integrated," according to the news report, although for the time being product facilities will operate separately.
Fundo de Reestruturação has investments in more than 10 companies. It did not disclose the terms of the deal nor reveal how much debt had been accumulated by the mills.
An official source told Publico: "The main goal of the operation is to guarantee the viability of the three companies that were in risk due to the financial situation and the difficulties in the global market due to the lowest demand, Asian competition and the exponential rise of the production costs."
The creation of the mega group will replace Lameirinho as the leader in Portugal's home textiles industry.
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