Xidelang Holdings (XDL), China-based manufacturer of sports and leisure wear, has signed an agreement to acquire the entire existing business and undertakings of Jinjiang Yangsen Garments Company, including all of its assets and certain agreed liabilities, the company announced on its website. As per the agreement, XDL proposes to satisfy the purchase consideration via cash and/ or issuance and allotment of new ordinary shares of $0.03 each in XDL shares at the issue price of Malaysian ringgit 0.22 per share, subject to such amount of cash and/or new shares to be negotiated and agreed upon by the parties prior to the execution of the Definitive Agreement, upon completion of the Due Diligence Exercise. Post-acquisition XDL will expand its business to include manufacturing of apparel. As such, the contribution from the manufacturing of apparel is likely to exceed 25 per cent or more of the net profits of XDL in the future. Presently, XDL is principally involved in the design, manufacturing and marketing of sports and leisure shoes as well as design and marketing of sports and leisure apparels. The proposed acquisition will enable XDL to vertically integrate its existing operation and further strengthen and complement its existing designing and marketing of apparel, leading to increase in sales of its apparels division. “The proposed expansion would also provide another source of revenue and income to the XDL Group and is part of XDL Group’s long term strategy of diversifying into an area with positive growth prospects,” according to the agreement. Based in China’s Fujian province, Yangsen is principally involved in the design, manufacturing, distribution and marketing of apparel on an original design manufacturing basis for various internationally-recognised brands such as Primark, Mizuno, Joma, Killtec, NewYorker and Admiral, amongst others. The manufactured apparels are distributed to international markets including the US, Europe, Turkey and Brazil. Yangsen is both ISO 9000 and ISO 14000 certified.
