Spentex Industries Acquires Schoeller Litvinov k.s., Czech Republic

Spentex Industries Ltd has informed that the Board of Directors of the Company at its meeting held on June 30, 2007, inter alia, in yet another cross border acquisition the Company has acquired Schoeller Litvinov k.s. (Schoeller) in Czech Republic. The acquisition of Schoeller was completed for a consideration of USD 25 million with net CA of 9 million. The transaction will enhance the topline of the Company by about Euro 55 million and add another Euro 6 million per year in cash flows. This acquisition is in line with Companys inorganic growth strategy of acquiring good, operational assets of strategic value. Schoeller is a leading yarn manufacturer in Europe with operations in Germany, the Benelux countries, France and the Czech Republic with customer base spread across European Union. This acquisition not only enhances its presence in the high margin European markets but also increases its client base substantially. The Companys customer base includes well-known Companies in the sewing thread industry, carpet manufacturers, weaving mills and knitwear factories.