Textiles

Franco-British laundry deal hinges on spring clean

8 June 2017

French group Elis is forking out 2.2 bln pounds for struggling UK rival Berendsen. A 45 pct premium secured the support of the target’s board but gives the buyer a measly 6 pct return on capital. The deal only creates value if the new owner has a plan to clean up its purchase.

French laundry’s $2.6 bln UK raid leaves stains

18 May 2017

Berendsen has rejected a cash-and-share bid from French rival Elis that values the British group at a 36 pct premium. The approach looks opportunistic given the weak pound and the target’s battered share price. Even so, Elis will barely cover its cost of capital.

India’s Welspun is in a tangle of its own making

26 August 2016

The Indian firm's shares have nearly halved since customer Target alleged Welspun passed off cheap sheets as Egyptian cotton. Markets tend to assume the worst. Fuzzy language and absence of the CEO amplify the problem. Welspun is failing at the basics of crisis communications.

China’s factories gain from march of the sew-bots

11 July 2016

Millions of jobs across Southeast Asia are at risk from wider use of automation, a new report has warned. The surprising beneficiary might be China. Robots could add to its shrinking workforce, while its network of suppliers and ports are a strength the rest of Asia can’t match.