Acquisition a new boon for wool

MELBOURNE: Wool marketing specialist The Merino Company (TMC) is to acquire New Zealand company Levana Textiles from parent Hellaby Holdings for an undisclosed sum.

TMC's decision to purchase the textile knitting, dyeing and finishing specialist - following automotive parts importer and distributor Hellaby's move to offload it as a non-core business - would secure TMC access to Levana's extensive local innovation and service offer, TMC CEO Mark McKinnon said.

"Levana Textiles' quick response operations, understanding of technical fabrics and product development capability combined with TMC’s wool expertise provides a great platform for Levana Textiles' growth in both the Australasian market and Asia Pacific."

McKinnon said the move also represented a significant step in TMC's strategy of connecting retail apparel brands to wool growers as well as supporting Australasian industry. 

Established in 1985, Levana Textiles supplies designed, knitted, dyed, finished and tested fabrics to a suite of Australasian brands across the fashion, swimwear, activewear, childrenswear and underwear categories with fabrication ranges including Tactel, Coolmax, Cotton and Merino.

McKinnon said Merino products ranked as Levana's fastest growing category, resulting in clear benefits for TMC.

"What is important for a healthy wool industry is to meet the needs of the consumer through retail brands. TMC’s unique model provides tailored solutions to retail brands starting from individual growers, to ensure the needs of the customer are met consistently. As part of our growth strategy, we are aggressively looking for new ways to deliver value to growers and new customers. Doing so will ensure customer loyalty."

TMC was established in 2005 by family wool business Lempriere to create tailored wool marketing and product solutions for leading retailers and apparel brands globally. The acquisition of Levana follows TMC subdivision Pronto Moda's purchase of Italian knitwear label Malagrida in September, as well as collaboration with iconic outerwear label Driza Bone to launch the Merino-based Driza Bone Activ brand in February 2006.

By Belinda Smart