Taiwan-based Roo Hsing Co., a denim jeans manufacturer, plans to buy a controlling stake in Nanjing USA Inc., an apparel manufacturer and distributor.
Roo Hsing, whose revenue rose 76.54 percent year-on-year to $566 million last year, will buy a 52.8 percent stake in Nanjing USA for $48 million to extend its international reach.
Roo Hsing expects to tap into retailers’ demand for branded, licensed and private label products by learning from Nanjing USA. The purchase is also expected to help Roo Hsing diversify its production bases.
Moreso, Roo Hsing anticipates yielding new synergistic gains by complementing Nanjing USA’s relations with U.S. retailers with its expertise in product design, procurement and quality assurance.