HanesBrands Inc – Industrial Facility Acquisition

The Assignment

To support a multinational company in a real estate acquisition in Northern Vietnam

  • Tractus’ client with a long time operating company in Vietnam decided to expand their operation in the country by acquiring an existing garment plant, owned by a Korean investor in financial distress.


Facilitate partnerships with government bodies

  • Tractus was initially tasked with legal and commercial due diligence of the acquired target. The land documentation was studied to ensure that the acquired target was legally zoned and titled.
  • We also conducted due diligence on the seller to verify their ownership title and all potential financial liabilities related to the land and assets attached to it, which might have impacted the acquisition timeline and administrative approval.
  • Tractus led a four-party negotiation involving the buyer, the seller, the creditors and the local government. We negotiated with the owner on a lower a purchase price for our client and with the client’s legal team, drafted contractual terms of the acquisition in order to minimize the risk for all parties.
  • Once the acquisition agreement was signed, Tractus managed the implementation process and worked with our client’s designated project team, their internal and external counsels, the seller and various government agencies to expedite the necessary approvals and implementation process.
  • Being a non-industrial zone, 8 different government agencies were involved in the process – the provincial People Committee, Department of Investment and Planning, Department of Construction, Department of Natural Resources and Environment, Department of Finance, provincial Tax office, People Committee at commune level and Department of Natural Resource and Environment.


Timelines met, successful negotiation of client’s price point

    • The final purchase prices were successfully brought down by 23.3% from the initial asked price, saving US$ 1,400,000 for our client.
    • All legal documents including business licenses, construction permit and the land use rights certificate were obtained in the planned timeframe and the client is currently running a successful operation.

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