Atraco was founded in 1986 and has a strong legacy of over three decades of regional leadership in the apparel business. Headquartered in Dubai, UAE, where it has its marketing, sourcing, product development and corporate functions, Atraco operates with a network of four manufacturing units in Kenya and one in Ethiopia producing about 40 million garments annually.

The equity value of the transaction is $55 million and the same will be funded by a mix of debt and internal accruals the transaction is expected to be closed by Q3 FY24 (Oct-Dec 23).

Sivaramakrishnan Ganapathi, vice chairman and managing director of Gokaldas Export, said, “We are very excited to welcome Atraco's admirable leadership team, their employees and their global customers to GEL. We have always believed in continuously adding production capacity at strategic locations enhancing our value proposition to customers. The acquisition of Atraco is an important step in this direction as it is strategically relevant, possesses a good complementary customer base, operationally strong, and above all, a leader in its own sphere. With this acquisition, we will gain access to low-cost dutyfree locations for manufacturing. Together, we can deliver a wider choice and value proposition to our global customers. We look forward to welcoming over 13,000 new members into the GEL family.”

Gokaldas Exports is engaged in the business of design, manufacture, and sale of a wide range of garments for men, women, and children and caters to the needs of several leading international fashion brands and retailers.

The company's consolidated net profit declined 17.4% to Rs 32.55 crore in Q1 FY24 as compared with Rs 39.39 crore in Q1 FY23. Net sales fell 15.7% year on year to Rs 514.65 crore in Q1 FY24 .

The scrip hits all time high at Rs 736.30 in intraday today.