South African private equity firm Jacobs Capital has acquired Gelvenor Textilesfrom Courthiel Holdings, which is owned by German corporate investor Claas Daun, for an undisclosed amount.
Gelvenor Textiles manufactures industrial, technical apparel, outdoor lifestyle, protective and aeronautical fabrics.
The transaction includes a merger with South Coast-basedMB Workwear, which will become a division of Gelvenor Consolidated Fabrics.
“This means that Gelvenor is now a 100% South African company for the first time in our long and successful history,” Gelvenor CEO Dicky Coetzee says.
He adds that this is important, as Gelvenor concludes important supply agreements with key customers within the workwear market and needs to ensure that there is no conflict of interest.
Jacobs Capital CEO Wessel Jacobs explains that, even though the two companies operate under the same parent company, they will continue to operate separately in the market as independent entities.
He adds that the new ownership will not result in any material changes in agreements with Gelvenor’s suppliers. Most importantly, the company’s sustained growth means there is no need for staff changes.
Instead, the emphasis will be on further innovation and research as part of a drive to position Gelvenor as a global leader in the production of specialist fabrics. In the longer term, this could see the company expand and create further job opportunities.
Coetzee says the sale is “very positive” for Gelvenor, as Jacobs Capital supports its sustainable business model and its strategy of continuing to place Gelvenor at the forefront of speciality and technical textiles.
He adds that plans are in place to grow production of aeronautical textiles by at least 30% in the next year through the production of light and thin fabrics for rescue parachutes, as well as capture additional market share in the paragliding market. Source: Engineering News