2 minutes
Mexican textile company Siete Leguas acquires Brazil’s Santista
Grupo Siete Leguas (GSL) is moving closer towards its goal of becoming the largest denim producer in Latin America with one of its biggest acquisitions yet. After buying the American company AALFS in February, the Mexican company announced this month an agreement with Brazil’s Mover Participações (formerly Camargo Correa) to acquire 100% of the shares of textile company Santista SA and all its subsidiaries.
According to a report seen by FashionNetwork.com, the transaction includes the Brazilian division of Santista Work Solutions. Currently, the business is divided in two units: jeanswear, focused on developing innovative fabrics for the production of denim; and workwear, focused on the production of special fabrics for office-appropriate garments.
Under the agreement, Siete Leguas also acquired Santista’s subsidiary in Argentina, which organised the first denim trade show in the South American country in November.
“GSL is very motivated with this acquisition and reinforce the commitment and vision to invest in Brazil and Argentina and enhance and grow the operations in South America,” said the group.
The deal to acquire Santista and its subsidiaries transforms Grupo Siete Leguas into one of the largest textile companies worldwide. Once integrated, Grupo Siete Leguas will have a presence across all of America and South America, with production and sales facilities in the US, Mexico, Nicaragua, Brazil and Argentina.
GLS is currently formed by Siete Leguas, AALFS Manufacturing and Tavex México. It provides more than 10,000 direct jobs, including 8,000 in Mexico and 2,000 in Nicaragua. The group focuses on the production of jeans, denim and other textile products for brands and department stores such as Levi's, Polo Ralph Lauren, JC Penney, Target, VF, Lucky Brand and J Crew, to name a few.
Meanwhile, Santista is part of Mover Participações S.A, the new brand identity and direction of industrial conglomerate Camargo Correa. In 2006 Santista merged with Spanish company Tavex but in 2015 Camargo decided to terminate their tie-up. This year, the Brazilian group divided Santista’s business, selling part its Mexican division to Siete Leguas and European operations to German group Aurelius.
GSL is set to once again repeat Santista and Tavex Mexico’s history. Then, the Mexican group undertook a series of investments which contributed to the growth and profitability of the Brazilian company.
Copyright © 2024 FashionNetwork.com All rights reserved.
