George at Asda today announced it had exchanged contracts with the owners of the Türkmen 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 Türkmen 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.