Jerash To Acquire MK Garments For $2.8M Cash

Jerash Holdings Inc JRSH has announced its subsidiary Jerash Garments and Fashions Manufacturing Co Ltd has agreed to buy MK Garments Mfg Co (Jordan) for about $2.8 million in cash.
The transaction is expected to close in August 2021.
The new facility will enable Jerash to produce approximately 2.5 to 3.5 million additional garments per year.
Jerash expects to increase annual production capacity by 20% after the acquisition.
Under the terms of the agreement, Jerash will assume the manufacturing licenses and existing physical operations of MK Garments.
"We expect the facility to immediately add needed capacity and give us the ability to scale up to satisfy increasing demand from new and existing customers," said Sam Choi, Chief Executive Officer.
Jerash had cash and equivalents of $21.1 million as of March 31, 2021.
Price action: JRSH shares are trading higher by 6.6% at $6.78 on the last check Tuesday.