Israeli apparel designer and marketer, Bagir Group said it has entered in to a deal to purchase a 50 per cent stake in Ethiopian clothing factory, Nazareth Garments.
The deal which was negotiated for $1.5 million is subject to several conditions which are to be met by both Nazareth and Bagir, with the closing of the deal anticipated by this year-end.
According to Bagir, the deal is expected to give Bagir a competitive advantage from the duty free status granted by both, the EU and US.
“Competitive costs and government support for the textile industry, would also prove to be favourable to the Bagir Group,” it said
Danny Taragan, CEO of Bagir Group Ltd said, “We have today announced the potential investment in an Ethiopian production facility which is a very exciting opportunity for Bagir.”
He added, “The board considers that the work being undertaken and the potential new investment will strengthen the position of the company.” (AR)
