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GRUPO SYNKRO AND MEXICAN INVESTMENT GROUP AGREE TO ACQUIRE KAYSER-ROTH CORPORATION

 MEXICO CITY, Nov. 22 /PRNewswire/ -- Grupo Synkro S.A. de C.V. and a group of Mexican investors announced today in New York that they have entered into an agreement to acquire Kayser-Roth Corporation from Collins & Aikman Group, Inc. Grupo Synkro is the largest producer and distributor of legwear in Mexico and one of the top five worldwide.
 Joining Grupo Synkro in the venture are members of the Ballesteros family, principal stockholders in the Mexican company.
 The transaction, valued at approximately $233 million, is expected to be completed by year-end. (This is believed to be the second largest Mexican acquisition of an American corporation.) Combined sales of the two entities, estimated to be $600 million, will make the new operation the second largest producer and distributor of hosiery worldwide. This represents a significant expansion of the market held by Grupo Synkro.
 Martin Ricoy, senior vice president and chief operating officer of Grupo Synkro, said that Kayser-Roth would continue to be operated independently following the completion of the acquisition. Robert L. Seelert, president and chief executive of Kayser-Roth and his management team, will continue their roles in the new company.
 "We want to assure everyone," Mr. Ricoy announced, "that we have no intention of exporting jobs to Mexico, only Kayser-Roth's great brand names. This acquisition will expand the Mexican market for such brands as No Nonsense and Burlington."
 Kayser-Roth has approximately 5,000 employees in the U.S. Its management, headquartered in Greensboro, N.C., and its manufacturing operations in the Carolinas, in Tennessee and in Puerto Rico, will remain in place.
 "Our two companies will interact to ensure that we continue to maintain the standards of excellence that Kayser-Roth and Synkro have set individually for the hosiery industry," Mr. Ricoy added.
 Grupo Synkro is the leader in the Latin American branded hosiery market with a 14 percent share. The company holds 54 percent of the hosiery market in Mexico and 10 percent in Argentina. Its closest competitor in Mexico holds 12 percent. Grupo Synkro's Dorian Grey brand alone accounts for 24 percent of the Mexican hosiery market. Its Carla Conti, Foreva, Active and Paloma Picasso brands are also market leaders. Last year, Grupo Synkro sales were over $180 million. Hosiery, together with men's and children's socks, accounted for 77 percent of total company revenues.
 Booz, Allen & Hamilton is serving as strategic advisors to the Grupo Synkro shareholders. The Chase Manhattan Bank is serving as financial advisor to Grupo Synkro.
 Grupo Synkro's headquarters are located in Mexico City, Mexico. The company's stock is traded on the Mexican Stock Exchange under the ticker symbol "SYNKRO." In the United States, Grupo Synkro's ADRs for its Series B shares trade in the over-the-counter market.
 Grupo Synkro S.A. de C.V. Backgrounder
 Grupo Synkro S.A. de C.V. is a Mexican industrial and commercial conglomerate, the leader in the Latin American branded hosiery market. Although Grupo Synkro operates subsidiaries in other related consumer goods markets, hosiery has always been the cornerstone of Grupo Synkro's business operations.
 In 1992, legwear, which includes women's hosiery and men's and children's socks, represented 77 percent of Synkro's total sales and 98 percent of its consolidated operating profit. Dedication to offering the finest hosiery has made Grupo Synkro one of the top five producers and distributors of legwear worldwide. Grupo Synkro's 1992 sales were $180 million.
 Operation of Grupo Synkro's hosiery business is primarily conducted through several wholly-owned principal subsidiaries in Mexico: Cannon, Canofil, and Arcoplus, as well as Arcoplus Argentina.
 Cannon, which was founded in 1955, maintains the leading position in the pantyhose market with product representation in all price segments. Arcoplus brand names such as Paloma Picasso and others also command great respect in the department and specialty store market.
 Grupo Synkro is the leader in the Latin American branded hosiery market with 14 percent. Grupo Synkro holds 54 percent of the hosiery market in Mexico and 10 percent in Argentina. Its closest competitor in Mexico holds 12 percent. The company's Dorian Grey brand alone accounts for 24 percent of the Mexican hosiery market. Its Carla Conti, Foreva, Active and Paloma Picasso brands are also market leaders.
 Grupo Synkro's leadership in the hosiery industry -- driven by its brand names, sophisticated marketing and strong distribution network -- has enabled the company to increase its investment in state-of-the-art technology for knitting, assembling and packaging. Dedication to continual technological improvement, coupled with Synkro's successful integration of the texturizing and covering processes -- necessary in hosiery manufacturing has guaranteed Synkro global competitiveness for years to come.
 The history of Grupo Synkro dates back to 1955 when, under the name of Cannon Mills, S.A. de C.V. (not related to Fieldcrest Cannon), the company was incorporated to manufacture and distribute women's hosiery and socks. The Mexican Ballesteros family bought a majority share of Industrias Synkro in 1981. At the time of this purchase, the company was comprised of Cannon Mills, S.A. de C.V., Calzado Puma S.A. de C.V. (licensee of athletic shoes from Puma Germany), Industrias H-24, a manufacturer of household products, and Cadimac, S.A. de C.V., a manufacturer of brand name cosmetics. In 1989, Industrias Synkro changed its name to Grupo Synkro, the name it retains today.
 At the end of 1992, Gruupo Synkro acquired Arcoplus S.A. de C.V., another manufacturer and distributor of hosiery in Mexico, and Modecraft, S.A. de C.F., a manufacturer and distributor of hosiery in Argentina for more than thirty years. Modecraft changed its name to Arcoplus Argentina after the acquisition.
 As of Sept. 30, 1993, the majority of the company's outstanding shares were owned by members of the Ballesteros family.
 Grupo Synkro is headquartered at Boulevard Manuel Avila Camacho 191, Colonia Chapultepec Morales, Polanco, 11560 Mexico.
 The company's stock is traded on the Mexican Stock Exchange under the ticker symbol "SYNKRO." In the United States, Grupo Synkro's ADRs for its Series B shares trade in the over-the-counter market.
 -0- 11/22/93
 /NOTE TO EDITORS: Martin Ricoy of Gruupo Synkro is available for interviews in New York. Contact Judith Czelusniak or Michelle Jordan, both of The Dilenschneider Group, 212-922-0900. Robert Seelert of Kayser-Roth is available for interviews in North Carolina at 919-547-4600/
 /CONTACT: Michelle Jordan or Judith Czelusniak, both of The Dilenschneider Group, 212-922-0900/


CO: Grupo Synkro S.A. de C.V.; Kayser-Roth Group; Collins & Aikman ST: IN: TEX SU: TNM

TM -- NY098 -- 7028 11/22/93 19:05 EST
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Publication:PR Newswire
Date:Nov 22, 1993
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