The 2020 Mid-Year Economic Update_long

Lakeland Industries Expands in Brazil


Lakeland Industries, Inc., manufacturer of protective apparel, has agreed to acquire Brazilian protective apparel supplier Qualytextil S.A. Qualytextil, based in Salvador Bahia, Brazil, was founded in 1999 and serves the Brazil Protective Clothing market in the following areas: firemen's turnout gear, conductive and electric arc garments, chemical protective garments, occupational, multilayer and waterproof operational garments, aluminized and molten metal lines of protective clothing.
 
The purchase price is USD$12.5 million. Qualytextil sales for 2007 were US$9.8 million.
 
Qualytextil is in the northeastern part of the country, where the State provides tax incentives, labor rates are favorable and is conveniently located to transport garments economically ...

Lakeland Industries, Inc., manufacturer of protective apparel, has agreed to acquire Brazilian protective apparel supplier Qualytextil S.A. Qualytextil, based in Salvador Bahia, Brazil, was founded in 1999 and serves the Brazil Protective Clothing market in the following areas: firemen’s turnout gear, conductive and electric arc garments, chemical protective garments, occupational, multilayer and waterproof operational garments, aluminized and molten metal lines of protective clothing.
 
The purchase price is USD$12.5 million. Qualytextil sales for 2007 were US$9.8 million.
 
Qualytextil is in the northeastern part of the country, where the State provides tax incentives, labor rates are favorable and is conveniently located to transport garments economically throughout the country.
 
Christopher Ryan, CEO of Lakeland, said: The Qualytextil acquisition in Brazil would allow Lakeland to expand worldwide in one of the 10 most important emerging economies. Brazil is a new market which is rapidly increasing its GDP by about 5% per year. Qualytextil has been operating in the market for 7 years, and can provide Lakeland with an in-house sales force of 20 employees and 28 outside sales representatives to cover the entire country, selling directly to the end user.
 
“Qualytextil is selling directly to the major state-owned companies and agencies and the main oil and chemical companies in Brazil. By selling direct, we can get better margins, and lead times will be shortened because we will first approach the companies that are buying direct, and be able to run through their testing trials faster than if an uneducated distributor is doing it. Qualytextil also has a contract with Petrobras, a large Brazilian petroleum company to supply fire-retardant overalls through January 2010 and has a store located inside the Petrobras facility.”
 
Lakeland Industries, Inc. manufactures and sells safety garments and accessories for the industrial protective clothing market. The Company’s products are sold by a direct sales force and through independent sales representatives to a network of over 800 safety and mill supply distributors.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.