Tarrant's Twill Mill
Los Angeles-based private label manufacturer Tarrant Apparel Group completed its acquisition of a twill mill in Tlaxcala, Mexico, from Trans Textil International SA de C.V. The deal was completed for 100,000 shares of newly created, nonvoting shares of Tarrant stock, a 25 percent equity stake in Tarrant subsidiary Tarrant Mexico S. de R.L. de C.V. and the cancellation of approximately $56.9 million in debt owed by Trans Textil. Tarrant commissioned Trans Textil to build the facility in 1998 and purchased and leased the equipment once the facility opened, with the agreement that Tarrant had the first right to all production capacity at the mill. The deal also gave Tarrant the option to purchase the facility and discontinue its agreement with Trans Textil.
