Nishat Mills to Acquire Wernerfelt A/S for $4.5 Million

Lahore, Pakistan-based Nishat Mills is slated to acquire Danish fabric maker Wernerfelt A/S, according to a notice posted on the Pakistan Stock Exchange last week.

In a Jan. 20 meeting, the Nishat Mills board of directors agreed to purchase 100 percent of the European manufacturer's issued share capital, the statement said. Complete management control will be transferred to Nishat Mills or subsidiary Nishat International FZE, Dubai for up to $4.5 million from Lars Lauridsen Holding ApS. The acquisition will be subject to a definitive agreement as well as regulatory approvals.

Eighty-year-old Wernerfelt A/S supplies performance fabrics for personal protection and workwear. The company specializes in modacrylic blends made with flame-retardant properties as well as cotton and cotton-blended fabrics in varying weights, high visibility textiles, breathable, waterproof laminates and other fabrics made for industrial use. An in-house Denmark laboratory handles product testing.

Nishat Mills is the flagship brand of Nishat Group, founded in 1951. The vertically integrated textile company is known for spinning, weaving, dyeing and printing natural and synthetic fabrics for apparel and home textiles. It has historically supplied international brands like H&M, and in 2021 partnered with Seattle-based material innovation firm Circular Systems to scale production of its Texloop RCOT Primo recycled cotton and Agraloop BioFibre yarns, already in use by the fast-fashion giant. The closed-loop technology transforms agricultural waste into fibers for fabrics, using less energy and creating fewer greenhouse-gas emissions than traditional manufacturing processes.

The company reported a record-setting fiscal 2022, with Nishat's after-tax profits increasing by more than 74 percent from 2021. It credited more effective marketing strategies and a more diverse product mix for its ability to attract new business.

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