Man Wah holdings boosts US presence with Gainline Recline acquisition

Man Wah Holdings Limited announced supplemental details regarding its acquisition of 100% interest in Gainline Recline Intermediate Corp., originally disclosed on December 18, 2025. The acquisition consideration was determined through arms' length negotiations, factoring in the target group's net asset value of $28m as of June 28, 2025, and due diligence findings. A premium of approximately $7m over the net asset value was paid, reflecting the value Man Wah placed on the target group's existing brands and its eight manufacturing facilities in the United States.

The acquisition provides Man Wah with immediate access to US manufacturing facilities and established brands, a strategic move to better position the group amidst current geopolitical and macroeconomic conditions. The vendor, Gainline Recline Intermediate Corp., was owned by Gainline Equity Fund, whose general partner is Gainline Equity Fund GP LLC. As of November 30, 2025, Gainline Equity Fund's investment manager affiliate managed approximately $1.7bn in assets.

The board confirmed that the vendor and its ultimate beneficial owners were independent third parties as of the announcement date. The financial position and long history of the target group's brand name were key factors in determining the acquisition's consideration.