WL Ross enters India with textile purchase

WL Ross has paid $37m for OCM, a manufacturer of worsted textiles, in the US financial restructuring group’s first deal in India.

WL Ross & Co, a US restructuring specialist, has made its first investment in India, acquiring textile manufacturing business OCM for $37 million (€29.2 million).
 
WL Ross made the acquisition through its $300 million India Asset Recovery Fund, co-investing alongside its $1.1 billion WLR Recovery Fund III and the Housing Development Finance Corporation, WL Ross’s partner in India since last October.
 
Established in 1977 as India’s first specialised housing finance institution, the corporation has financed 2.6 million properties and currently has $9.5 billion of assets.
 
Initially founded as a manufacturer of handmade carpets and carpet yarn, OCM is a worsted textile manufacturer supplying fabrics including tweed and jacket suitings to more than 60 wholesalers and 1,200 retailers in India as well as global markets.
 
WL Ross’ previous investments in the textile industry include the $90 million acquisition of Cone Mills in 2003 and the secondary buyout of Burlington Industries from PPM Capital in the same year. The two firms were subsequently merged to create International Textile Group.
 
Global fund management group AMVESCAP acquired WL Ross in July of this year for $375 million. The transaction involved an up front payment of $100 million, with the remainder to be paid over five years.