News out on EGLY .31: Ever-Glory Completes Strategic Acquisition, Expands Footprint in Japanese Market
Friday March 16, 8:30 am ET
NANJING, China, March 16 /Xinhua-PRNewswire-FirstCall/ -- Ever-Glory International Group, Inc. (OTC Bulletin Board: EGLY - News; ''Ever-Glory"), a leading apparel manufacturer in the People's Republic of China (''PRC''), announced that it closed the acquisition of Nanjing New-Tailun Garments Co., Ltd. (''New-Tailun") effective December 30, 2006.
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New-Tailun is mainly engaged in the sales and manufacturing of casual wear, sportswear, jeans and trousers for middle-high well-known brands and retail chain stores in Japan, the United Kingdom, Europe, and the United States. New-Taillun generated revenues of US$9.7 million and net income of US$1.0 million for the nine months ended December 31, 2006. Over the same period, sales to customers in Japan and the United Kingdom accounted for 45% and 19% of total revenues, respectively.
The acquisition was funded by a combination of cash and stock valued at approximately US$12 million. To close the transaction, Ever-Glory will pay the seller the equivalent of US$2.0 million in Renminbi (''RMB'') and issued approximately 20.8 million shares of its restricted common stock. Upon completion of this transaction, New-Tailun Co., Ltd. became a wholly owned subsidiary of Ever-Glory.
''New-Tailun is an excellent fit with our existing operations as it increases our geographic reach in Japan and further expands our jeans wear product line. It also gives us the opportunity to apply our successful experience in quality control and cost management,'' commented Mr. Yihua Kang, President, CEO and Director of Ever-Glory. ''This acquisition marks an important step in our growth strategy. We plan to continue expanding our premier customer base, both organically and through acquisitions in our quest to become the leading apparel manufacturer in China.''
About Nanjing New-Tailun Garments Co., Ltd.
Nanjing New-Tailun Garments Co., Ltd. is a Chinese limited liability company mainly engaged in the sales and manufacturing of casual wear, sports wear and jeans wear, trousers for middle-high famous brands and retail chain stores in the United States, Europe and Japan. New-Tailun is equipped with advanced manufacturing and automatic-cutting machines. It has a staff of over 800 people with the annual production capacity of 2.5 million garment pieces per year.
About Ever-Glory International Group, Inc.
Ever-Glory International Group is a U.S. publicly traded company engaged in international garment manufacturing for well-known middle to high-grade casual, outer, and sportswear brands. The company's U.S. headquarters is based in Los Angeles, CA, although Ever-Glory also owns three full subsidiary companies, Nanjing Goldenway Garments Co. Ltd., Catch-Luck Garments Co, Ltd. and New-Tailun Garment Co, Ltd. Ever-Glory has strategic business partners in countries including China, Europe and the U.S. The Company cooperates with well-respected garment retailer chains such as Itochu, Shinko, Debenhams, Next, C&A, Itoyokado and others in handling high and middle grade casual-wear and sportswear. The company entered into production and sale cooperation agreements with a number of internationally famous brands such as Matalan, Eddie Bauer, Best-Seller, BB Dakota and others. The company employs about 1,500 people. At present, the market distribution is segmented as 20% in Japan, 45% in Europe, 25% in United States and 5% in China. For more information about Ever-Glory International Group, please visit: everglorygroup.com .
Safe Harbor Statement
Under the Private Securities Litigation Reform Act of 1995: This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to the company's ability to accurately complete product orders, coordinate product design with its customers, ability to expand and grow its distribution channels, political and economic factors in the People's Republic of China, the company's ability to find attractive acquisition candidates, dependence on a limited number of larger customers and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Source: Ever-Glory International Group, Inc. |
