Sutlej Acquires Business of American Silk Mills LLC
October 25, 2017
MUMBAI, INDIA--Sutlej Textiles and Industries Ltd. (STIL) acquired the design, sales, and distribution components of American Silk Mills LLC based in Plains, PA. (USA) on October 18, thus adding this boutique designer and distributor of residential and contract textiles to Sutlej’s brand portfolio. Sutlej also acquired the American Silk Mills brand name. Following the closing, American Silk Mills will continue in its current business lines but will have now additional operating and financial resources, says Chuck Cox, Chairman and CEO Sutlej did not acquire the looms or the mill currently operated by the company, according to Cox. Instead, these assets will continue under existing ownership and will provide woven textiles to the new Sutlej-owned American Silk Mills, he says, as well as providing commission weaving services. As such, the weaving assets of American Silk Mills will be renamed but the plant will continue operating and all current employees will be retained for this purpose. Cox expects to fine tune the mill over the coming year, which means certain looms will be sold or replaced to optimize efficiency, he says. Sutlej says the acquisition of American Silk will add strength to its home furnishings portfolio. “We are excited to partner with Sutlej Textiles,” says Cynthia Douthit, current and continuing President of American Silk. “Increased investments in our infrastructure, inventory positions, technology and creative capital will position us to continue as a design leader, allow us to service our customers more efficiently and create and source enduringly beautiful textiles.” Founded in 1896, American Silk Mills remains among the oldest American textile brands by designing, weaving and distributing textiles for the residential, contract, transportation, and specialty markets. These products include indoor/outdoor performance fabrics, jacquard textiles, multiple grades and styles of velvets, silks, and other textiles. Among these is Sensuede® said to be an eco-friendly synthetic suede that will continue to be exclusively distributed in current markets by American Silk Mills. “American Silk Mills adds great synergy to access the American Home Textiles Market,” according to STIL President S.K. Khandela,” as quoted in the Hindu Business Line. “We are a large vertically integrated textile mill and do huge exports of cotton, viscose & poly blend yarns,” said R.R Kankani, Joint Executive President, Birla Home Décor division of Sutlej Textile Industries Ltd, India in a previous edition of Fabrics & Furnishings International. In that article last December, he mentioned that home textile fabrics are steadily increasing its market share for STIL. At that time, he also said that Birla division of STIL had moderate production capacity but would never lose an order for the sake of price. “We are well prepared to compete on price even with any other leading competitor,” he said. ChinaPlus Capital Ltd., acted as investment bankers to American Silk and in concert with executive management negotiated the terms of the transaction. The Waxman Law Firm of New York City served as counsel to the Company, and Fredrikson and Bryan of Minneapolis served as counsel to Sutlej.