Fifth Avenue picks up stake in Regionalink

January 11, 2012

City-based Fifth Avenue Sourcing has picked up 36.5 per cent stake in Regionalink LLC, a U.S. incorporated firm with offices in Guatemala City. Regionalink provides specialised sourcing support services to the U.S. and European apparel firms with factories in Central America and Dominican Republic.

Fifth Avenue is a sourcing management company helping creme de la creme of labels to connect with India. It sources and supplies fashion and sportswear for brands such as Diesel, Replay, Teddy Smith, John Galliano and the like. Fifth Avenue manages sourcing business in the vicinity of $100 million and it has 200 employees.

According to Promodh Sharma, Chairman of Fifth Avenue, the stake buy is done in two stages. In the first stage, which was completed in the middle of last month, Fifth Avenue picked up a 16.5 per cent stake. It will pick up another 20 per cent in a week or so. “A deal has already been initialled in this regard,' he said. Fifth Avenue has sourcing offices in Tirupur, Bangalore and Delhi. Further, it has sourcing offices in places such as Dhaka in Bangladesh and Istanbul in Turkey. It has global sales offices in Paris, Munich and Bielefeld.

“We have invested in Regionalink to facilitate our foray into the Central American sourcing market to service the U.S. and Europe,' he pointed out.

Mr. Sharma said both Fifth Avenue and Regionalink would eventually “have the same ownership equity in the company.'

He said the stake buy would be funded through internal accruals. He, however, would not like to disclose the consideration paid for the stake.

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Fifth Avenue picks up stake in Regionalink