Hardly a month has gone by over the last several years in which someone has not asked when PCCA would expand its presence in the textile business by building or buying another plant. We finally have the answer they had been wanting . . . “Now.”
The agreement for PCCA to purchase 100 percent of the stock ownership of Mission Valley Textiles, Inc., now has been signed. The transaction, which is discussed in more detail elsewhere in this issue, should be closed by the end of May. After closing, we will be able to share even more details with you about what we are doing and what our plans are for this operation.
Prior to reaching this expansion decision, meetings were held with PCCA delegates and gin managers in all of our trade territories to provide information and solicit input. The discussions were good, the questions were on point, and the attitude was very upbeat at every meeting.
We need not rehash all of that discussion here or all of the rationale behind this expansion. Suffice it to say that after a lot of careful study and work by many people, a unanimous decision was reached that this is right for our membership and our company at this time.
The marketing, creative, and sales expertise of the Mission Valley staff coupled with PCCA’s financial strength and manufacturing expertise should provide real synergy. Each brings a unique set of strengths which should complement the combined operation very well. The timing seems right for PCCA to move into a broader arena of fabric merchandising, but the primary focus will continue to remain on basic denim production which has been such a consistent margin provider for many years now.
The net of it all is, of course, that we believe there is more money to be made for our membership in textiles than we are currently enjoying, and that this acquisition helps move us in the direction of capturing more of those margins. It should give us opportunity to add more value to more cotton and improve our returns to the growing family of Mill Option participants which now includes about 70 percent of you.
Certainly, all involved in the decision making process believe this acquisition is in line with PCCA’s mission statement and is in support of the 20/20 Vision Equity Plan which has been our financial road map over the past five years. This acquisition is just the sort of thing for which our current financial strength was built. It allows us flexibility in attempting to enhance an already excellent textile operation on your behalf.
Obviously, we will be keeping you informed as PCCA progresses with this operation, and we hope to have some exciting things to share with you as we move forward. To those of you who have been so diligent to inquire from time to time as to when PCCA would expand its textile operation, I am pleased to be able to report to you that we are doing it now.