Indo Count Acquires US Premium Brand Wamsutta from Beyond Inc
Upstox
2 min read • Updated: April 19, 2024, 12:17 PM
Summary
Indo Count said that the acquisition of Wamsutta, which closed on April 18, strengthens its brand portfolio and elevates its position in the premium market segment. The cost of acquisition stands at $10.25 million. Indo Count said the acquisition will have a material impact on developing branded business going forward.
Indo Count Industries (ICIL) on Friday announced its strategic acquisition of the international home fashions brand Wamsutta from Beyond, Inc.
Beyond Inc is an e-commerce firm that owns Overstock.com, Bed Bath & Beyond, Baby & Beyond, Zulily, Kids & Beyond, Backyard.com, College Living, and other related brands and associated intellectual property.
Indo Count said that the acquisition of Wamsutta, which closed on April 18, strengthens its brand portfolio and elevates its position in the premium market segment.
The company stated in an exchange filing that the cost of acquisition of the brand stands at $10.25 million. Indo Count said the brand was established in 1846 and has a long history in the textile industry, known as a national brand in North America. The brand’s product line encompass various categories including bedding, bath linens, window treatments and decorative accessories.
Following the announcement, Indo Count Industries stock rose 1.2% intraday, with a day high of ₹377.4 per share but pared early gains to trade at ₹371.9 per share as of 12:15 pm on NSE.
Indo Count said the acquisition will have a material impact on developing branded business going forward.
Mohit Jain, executive vice-chairman at Indo Count stated that Indo Count will explore multiple channels of distribution to reach the core Wamsutta consumer. “Our strategic vision is to leverage our operational capabilities to enhance the brand value proposition and fulfill its potential globally,” Jain said.
During the third quarter of fiscal year 2024, Indo Count registered a 10% year-over-year (y-o-y) increase in its total income at ₹727 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 51% to ₹118 crore. EBITDA margin improved 442 basis points to 16.2% during the quarter. The company reported a 54% y-o-y jump in its third quarter net profit to ₹58 crore.
ICIL had also committed nearly ₹50 crore capex in a solar power project with a capacity of approximately 10 MW.
Shares of ICIL have gained over 24% since the beginning of the year. The stock has risen over 180% in the last one year.