George at Asda today announced it had exchanged contracts with the owners of the Turkmen Group to acquire the sourcing division of its long-term supply partner GAAT, for an undisclosed sum.
GAAT is based in Istanbul, Turkey, and has played a key role for more than a decade in building George at Asda's position as one of Britain's favourite fashion brands.
George's largest supplier, GAAT works with over 80 manufacturers to manage garment production on behalf of the business in key locations such as Turkey, Sri Lanka and Egypt.
At a time when customers are more focussed on value than ever, this acquisition will enable George to continue to develop its world class supply operation.
The acquisition reflects similar moves Asda has already made elsewhere in its business to find smarter ways to serve customers with even better quality at a lower cost. In 2009, it acquired International Produce (IPL), which now sources fruit and grocery items for the UK business as well as other countries where Walmart trades.
Andrew Moore, Executive Managing Director of George at Asda said:
"This is a natural and exciting next step for the business and will help George become even more responsive in delivering style, quality and value as we expand here in the UK and elsewhere around the world.
"We have developed an excellent relationship with GAAT over the last decade. Atila Turkmen and his team have built a formidable business that has played an integral role in the growth and success of George. We look forward to working with Atila and his team on the full integration of his business and people into the George organisation.
"By bringing the GAAT team into the George, Asda and wider Walmart family, it enables us to underpin our quality, value and style credentials, extending our sourcing capabilities to satisfy supply demands from Walmart stores across the world, as we strive to become even more responsive to our customers".
Atila Türkmen, chairman of the Türkmen group said:
“We're all very excited about the prospects of the new stage in our relationship with George at Asda. Our dedicated and passionate team has always been proud of being part of the success story of George. I'm confident that working as one team with George, Asda and Walmart colleagues, we are going to take George brand to new heights both in the UK and internationally”.
George at Asda expects to complete the acquisition in the course of the coming quarter.
- The Turkmen Group is a privately owned group of companies operating mainly in the textile industry. With 40 years of experience, the Turkmen group is one of the leading textile groups in Turkey.
- GAAT was established in 1999 and has developed an exclusive relationship with George over 12 years, building capabilities and expertise across the supply chain from design to sourcing, production and delivery.
- GAAT does not own any manufacturing or production capabilities itself but manages all of George's Turkish & Egyptian factories and co-ordinates production programmes/raw material procurement. GAAT launched Sri Lankan operations in 2010.
As the pioneer of supermarket fashion, the George brand provides stylish clothes that offer both quality and value. George is sold in over 380 Asda stores nationwide as well as online with George.com with free delivery to any of Asda's 542 stores. Over 237 million garments are made a year for George and the company operates a permanent 100 day quality guarantee on all of its clothing.