A subsidiary of fashion supply chain manager Lever Style Corp has entered into a sale and purchase agreement to acquire certain assets of Hong Kong knitwear manufacturer Vista Apparels.
The company supplies sweaters to premium brands such as Paul Smith and James Perse, and digitally-native brands like Ministry of Supply.
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By GlobalDataLever Style will assume Vista’s customers, supplier relationships, technical know-how, and order book. The acquisition enables Lever Style to offer its existing customers sweaters in addition to the wide range of apparel the company already provides. Additional cross-selling opportunities are expected from Vista’s customers purchasing Lever Style products.
“The Vista acquisition is a first step towards our goal to acquire companies that expand our business opportunities with our customers and further strengthen our market position,” says Stanley Szeto, executive chairman of Lever Style. “We expect to start capitalising on the synergies with Vista in 2021, and to announce further acquisitions in due course.”
The acquisition is structured as an agreement to purchase certain of Vista’s assets such raw material inventory, with the final purchase price based on performance.
In the wake of the Covid-19 pandemic and global economic uncertainty, the company said it remains an opportune time for the group to gauge merger and acquisition opportunities to grow the business and enhance return to the company’s shareholders.
“The board will stick to the strategy set out in the company’s prospectus dated 31 October 2019 and will continue to explore appropriate merger and acquisition opportunities to gain market share by expanding our apparel category portfolio and to create incremental profitability by achieving synergies such as cross-selling and economies of scale.”
Fuelled by new investment from its listing on the Hong Kong stock exchange in November last year, Lever Style is in the process of realigning its business model to be the product engine for rising e-commerce brands.
