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US Company to Buy India’s Second-Largest Sewing Thread Manufacturer

sewing thread pixabay

American & Efird (A&E), the largest U.S. manufacturer and distributor of thread and technical textiles, is about to expand its production base.

A&E, part of the KPS Capital Partners portfolio, has agreed to acquire majority ownership of Vardhman Yarns and Threads, India’s second-largest manufacturer and distributor of industrial and consumer sewing thread, from its joint-venture partner, Vardhman Textiles.

The deal is expected to close this summer, after which time A&E will own 89 percent of Vardhman Yarns and Threads, marking the 125-year-old company’s fifth acquisition under KPS ownership. A&E has nearly doubled in size over the past four years.

“Our long-standing blue-chip customer base, including leading global brands, multinational corporations and regional manufacturers, rely on A&E as a mission-critical supply chain partner. This acquisition further enhances our demonstrated ability to provide customers with the highest-quality thread and superior service around the world,” Les Miller, chief executive officer of A&E, said in a statement Monday.

He added, “Vardhman Yarns and Threads’ excellent reputation, world-class operations and leading position in the Indian market will enable A&E to more fully benefit from both fast-growing domestic demand for high-quality products in India and increasing international demand for exports from India.”

Vardhman Yarns and Threads, which generated revenue of about $110 million in fiscal year 2015-16, operates five manufacturing facilities in India and employs more than 4,500 associates. Financial terms of the deal were not disclosed, but Miller said A&E plans to invest “significant” capital and resources in the company.

According to Michael Psaros, a managing partner of KPS, more acquisitions are on the way.

“A&E will continue to aggressively expand into adjacent geographies, products and end-markets around the world,” he said. “A&E’s global reach, product diversity, world-class environmental sustainability practices and conservative capital structure enable the company to continue its momentum and success.”