OSAKA (Kyodo) -- Hosiery manufacturer Okamoto Corp. said Thursday it has placed midsize U.S. hosiery wholesaler and maker Royce Too LLC under its wing by purchasing 75 percent of its management rights for 2 billion yen.
The transaction is designed to secure a foothold in the U.S. market by acquiring the New York-based company's marketing and distribution networks, the company said, adding it envisions selling its products under the brand names of Royce Too.
President Tetsuji Okamoto told a news conference, ''We expect to cash in on synergy effects with the two companies showing their capabilities to the full in areas where they have advantages.''
Royce Too President Bob Boglioli told the same news conference his company will benefit from the deal by taking advantage of Okamoto's excellent products.
Okamoto, based in the town of Koryo, Nara Prefecture, is the largest Japanese specialized hosiery producer.
Royce Too posted sales of $50 million (5.2 billion yen) in the 2007 business year, according to Okamoto.
