For the first time in 40 years, iconic Australian textile business, Geelong Textile Group, is on the market for sale.
The business, which has been in operation since 1920, is up for sale after the current owners', the Dimmick Family, children are not pursuing a career in the business.
The Geelong Textile Group is made up of two businesses - Geelong Textiles Australia and Geelong Dyeing - and supplies quality upholstery and apparel fabrics for commercial and domestic use.
The business has supplied material for the Australian Test Cricket teams' baggy green caps - made famous by every captain including Sir Donald Bradman and Ricky Ponting - as well as the fabric for the Sydney Opera House seating and the wool bunting material for Sydney's AMP Historical Building.
Adamant International managing director John O'Connor is heading the sales campaign to find a new buyer, and said there had never been a better time to look at the Australian textile industry as an investment.
"The Geelong Textile Group is an interesting business. Its storied history, quality and diverse product range, its potential for expansion, and its stable, highly skilled, workforce means prospective investors will inherit a going concern capable of generating increased profits almost immediately," he said.
"For the past 41 years, the Geelong Textile Group has been owned by the Dimmick family.
"The younger generations have pursued different careers, but they are committed to finding investors for the businesses to ensure continued employment opportunities for the experienced workforce as well as offering the purchasers an established, respected commercial enterprise with current suppliers and customers.
"Since the pandemic circled the globe, every country with a manufacturing base realised that making things at home to protect against disruption to supply chains is vitally important.
"This industry, in particular, has benefited from increased interest."
In 2019, the cost of shipping a container filled with fabric from China was $1,500 - $2,000, now it's US$11500.
He said the extreme rise in freight cost was loaded on to the price of the textiles, which meant Australian made materials were price competitive.
"Fewer vessels arriving in Australia, because they cannot easily backload, means long lead times for textiles ordered from overseas, which can be supplied from Geelong in days not months,"Mr O'Connor said.
"The company will attract investors who are passionate about Australian textiles, manufactured from Australian wool; and who are interested in the opportunities presented by the reshoring of textile manufacturing to Australia.
"Past experience suggests that businesses such as the Geelong Textile Group appeal to textile importers who need to return to local manufacturing to secure their supply chain."
He said there was also huge growth potential for investors, with governments learning "a hard and expensive lesson" that importing textiles was no longer the cheapest, safest, or most timely option.
Employment opportunities and security of supply had become a priority for governments everywhere, he said.
"If COVID-19 has a silver lining, it has to be that common sense has returned to government procurement, where supporting the Australian manufacturing sector pays dividends for employment, communities, and taxpayers," Mr O'Connor said.
"Long term, lucrative government contracts used to be the foundation of Australia's textile industry and in the past 12 months, the indicators are they will be again."
Over the years, the Group has diversified its operations and customer base, expanding into home textiles and upholstery fabrics made from Australian wool.
"The nature of international textile manufacturing is that over the past 50 years it has evolved from being an amalgam of several companies - each one supplying a specific service - to the Geelong Textile Group model," Mr O'Connor said.
"This combines the design and technical weaving capabilities of Geelong Textiles Australia; and the expertise of Geelong Dyeing in colouration and finishing of various fibres, including Australian wool, cotton, and blended fabrics.
"Expanding on its core services of commission weaving, dyeing, and finishing, Geelong Weaving Mill has diversified into a wide range of domestic products.
"In a move that almost anticipated the additional demands on textile manufacturing brought on by the pandemic, the Geelong Textile Group has successfully diversified its customer base and expanded core services and products to include home textiles and upholstery fabrics manufactured from high-quality Australian wool."
More recently, the company launched its online presence to cater for the shift to online supply of products to both the domestic and international markets.
Mr O'Connor anticipated strong interest in the Geelong Textile Group due to Australia's domestic need for quality textiles, plus its proximity to over two billion people living in Asia.
"Geelong is the largest manufacturing hub in regional Victoria with easy access to import/export ports in Melbourne and a strong and stable workforce," he said.