Jerash Holdings Completes Acquisition of MK Garments

Jerash Holdings (NASDAQ:JRSH) has finalized the acquisition of Mustafa and Kamal Ashraf Trading Company (MK Garments) for approximately $2.8 million.

Rhea-AI Summary

Jerash Holdings (NASDAQ:JRSH) has finalized the acquisition of Mustafa and Kamal Ashraf Trading Company (MK Garments) for approximately $2.8 million. The deal involves a 71,000 square-foot manufacturing facility in Amman, Jordan, which Jerash took over in August 2021. The acquisition enables Jerash to retain 500 employees and start production immediately for its major clients, expanding its capacity in the apparel sector. Jerash is known for manufacturing sportswear and outerwear, serving several top global brands.

Positive

• Acquisition of MK Garments enhances production capacity by utilizing a 71,000 square-foot facility.
• Retention of 500 employees supports workforce stability and operational continuity.
• Immediate start of production for existing customers potentially boosts revenue.

Negative

• None.

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FAIRFIELD, NJ / ACCESSWIRE / October 11, 2021 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced that its wholly owned subsidiary, Jerash Garments and Fashions Manufacturing Co., Ltd., has completed the previously announced acquisition of Mustafa and Kamal Ashraf Trading Company (Jordan) for Manufacture of Ready-Made Clothes LLC ("MK Garments"), which operates a 71,000 square-foot apparel manufacturing facility in Amman, Jordan, for approximately $2.8 million in cash.

Jerash took over production at the MK Garments facility and retained its 500 employees in August 2021 and has begun manufacturing products for the Company's customers.

About Jerash Holdings (US), Inc.
Jerash Holdings (US), Inc. manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including Walmart, Costco, New Balance, G-III (which owns brands such as Calvin Klein, Tommy Hilfiger, DKNY, and Guess), American Eagle, and VF Corporation (which owns brands such as The North Face, Timberland, and JanSport). Jerash's existing production facilities comprise six factory units and four warehouses, and Jerash currently employs approximately 5,500 people. Additional information is available at www.jerashholdings.com.

CONTACT:
PondelWilkinson Inc.
Judy Lin Sfetcu or Roger Pondel
310-279-5980
jsfetcu@pondel.com

SOURCE: Jerash Holdings (US), Inc.

View source version on accesswire.com:
https://www.accesswire.com/667486/Jerash-Holdings-Completes-Acquisition-of-MK-Garments

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the value of Jerash Holdings' acquisition of MK Garments?

The acquisition is valued at approximately $2.8 million.

When did Jerash Holdings complete the acquisition of MK Garments?

The acquisition was completed on October 11, 2021.

How many employees were retained after the acquisition of MK Garments?

Jerash retained 500 employees from MK Garments.

What is the strategic importance of the MK Garments acquisition for Jerash Holdings?

The acquisition allows Jerash to expand its manufacturing capacity and support production for its major global clients.

Where is the MK Garments manufacturing facility located?

The MK Garments facility is located in Amman, Jordan.