SIOUX CITY – Aalfs Manufacturing Co., one of the largest textile manufacturers in the Western Hemisphere, has been sold to a Mexico-based garment company.
Grupo Siete Leguas, a family-owned jean and denim producer headquartered in Lerdo, Durango, Mexico, purchased Aalfs in a transaction completed Feb. 8. Terms of the deal were not disclosed.
Alex Rodawig, one of Aalfs’ managing partners confirmed the sale to the press last week and noted Aalfs will continue to operate as a subsidiary of Siete Leguas.
“So really all that kind of took place on Feb. 8 was the ownership change from our family to the family that owns Siete Leguas,” Rodawig said. “Aalfs continues as a U.S. company, as it has in the past, and all the employees continue doing what they’re doing.”
Aalfs has an American workforce of approximately 100, with 40 employees based at corporate offices, 15 employees in sales and marketing offices in Dallas and Minneapolis, and the remainder work at Aalfs’ distribution center in Mena.
Prior to the sale, Aalfs and Siete Leguas had done business with each another for more than 25 years. Alex Rodawig described the relationship as a “friendly competition.”
Having that type of long-term association with the firm is why he and other family members felt comfortable selling to them.
“One of the really attractive parts of this was the fact that this is another family-owned business that we’ve known for a long time,” Rodawig said. “The main advantage to this is, obviously, is size. By putting the two companies together overnight it becomes the largest denim manufacturer in the Americas.
“That’s going to enable Siete Leguas to continue to flourish and prosper in the future and be able to compete with other large manufacturers that are in the Middle East, Africa and Asia.”
The combined company will employ more than 10,000 in the United States, Mexico and Nicaragua, produce up to 20 million pairs of jeans annually, and export to more than 40 counties.
The expanded business plans to focus on the production of jeans, denim fabrics and other textile products for major clothing brands and department stores, including Levi’s, Polo Ralph Lauren, JCPenney, Target, Lucky Brand and other popular U.S. labels.