Vertically integrated supply chain firm Sae-A Trading Co. Ltd. is making inroads in the athletic apparel market as it looks for growth opportunities.
South Korea‘s Sae-A is one of the world’s largest apparel manufacturers, and it just inked a deal to acquire Tegra. Tegra is a sports apparel manufacturer of performance-driven on-field uniforms and gear for professional, college and high school athletes and their fans. Its integrated operating entities include Fjord and ArtFix in the U.S., Southern Apparel Contractors in Honduras and Decotex in El Salvador.
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According to the company website, the global Sae-A group has five divisions. Sae-A Trading is the manufacturing arm focusing on the U.S. market, while Sae-A Eins is the entity focusing on the EU market. Wintex is the group’s fabric mill, In the F is the retailer arm in Korea and Sae-A Spinning is the remaining division.
The combined company will see Sae-A expand its geographic production presence in the Western Hemisphere. Sae already holds a leadership position in Asia. The vertical textile and apparel manufacturer, which began operations in 1986, is a supplier to the American and European retail markets. The apparel supplier counts Target, Walmart, Kohl’s and Gap as retail clients. And its current global production base prior to the expected deal with Tegra spans Central America—includes Haiti, Guatemala, Nicaragua and Costa Rica—and Southeast Asia, which includes Indonesia, Vietnam, Cambodia, and Myanmar. Sae-A has more than 60,000 employees working in 10 countries across four continents. Closing of the Tegra transaction is expected later this month.
“This acquisition enables Sae-A Trading to further its growth trajectory, while ensuring continuous and consistent delivery of world-class products for its customers,” WK Kim, Global Sae-A group chairman, said. “The scale, operational bases, product development capabilities, and know-how that are being established with this combination will create significant opportunities and advantages for our customers and supplier.”
“We have been impressed by the commitment of Sae-A to our business, region and customers, and believe this transaction represents an attractive outcome for Tegra, its employees and our stakeholders,” Steve Cochran, Tegra’s CEO said.
Tegra, currently based in Atlanta, Ga., will move its headquarters to Seoul, Korea, after the transaction closes. Terms of the deal were not disclosed.
Sae’s integrated operations range from factory workers to engineers and textile designers to project managers. It produces 2.5 million apparel items every day, the company said. Annual sales are in the range of $2.4 billion. Technology allows it to include environmentally sustainable processes across the supply chain from design to wash. Also, vertical integration includes yarn production through its fabric mills enables the company to utilize new innovation and technology processes.
In addition to following local, national and international regulations, Sae-A has its own strict workplace safety and compliance requirements, including regular site visits from oversight teams, according to Sae-A’s mission statement. In 2022, the company implemented Coats Digital’s GSDCost solution, the time-based productivity benchmarking system, in all 41 of its production facilities. The move allows Sae-A to provide transparency connected to its global labor costs for its own and brand partners’ social responsibility goals. And in December, Sae-A Trading joined the Science Based Target Initiatives as it works on carbon reduction goals in line with the Paris climate agreement.
