Lakeland Industries, Inc. Enters into Lease Agreement with Morena de la Garza Gonzalez and Alejandro Mario Gonzalez Quezada
August 17, 2022 at 04:16 pm EDT
Share
On August 15, 2022, Lakeland Industries, Inc. and Morena de la Garza Gonzalez and Alejandro Mario Gonzalez Quezada entered into a Lease Agreement, dated as of July 6, 2022, pursuant to which the Company agreed to lease approximately 100,615 square feet in an industrial building in Monterrey, Mexico to be built by Lessor pursuant to the terms and conditions set forth in the Lease (the Leased Property). The Company plans to use the Leased Property to expand its manufacturing capabilities in Mexico. The initial term and rent payments will commence three months following the date of the Lessor's substantial completion of the specifications agreed to by the parties with respect to the Leased Property, as set forth in the Lease, targeted to be no later than 10 1/2 months after the execution of the Lease.
The Lease has an initial term of 10 years, and the Company may extend the term of the Lease for up to two additional five-year periods. The Lease provides that within 30 days after the execution of the Lease, the Company will assign the Lease to SAL Commercial Venture One, S.A. de C.V. (SAL), an indirect subsidiary of the Company to be formed under the laws of Mexico, once the incorporation process of SAL is completed.
Lakeland Industries, Inc. design and manufactures and sells a comprehensive line of industrial protective clothing and accessories for the industrial and public protective clothing market. The Companyâs product categories include limited use/disposable protective clothing, high-end chemical protective suits, firefighting and heat protective apparel, durable woven garments, high visibility clothing, and glove and sleeves. Its products are sold by its in-house customer service group, its customer service group, and independent sales representatives to a network of over 1,600 North American safety and mill supply distributors. It also designs and manufactures helmets for the structural firefighting, wildland firefighting, and rescue markets. Its authorized distributors supply end users, such as integrated oil, chemical/petrochemical, automobile, steel, glass, construction, smelting, heavy and light industry, cleanroom, janitorial, pharmaceutical, and technology electronics manufacturers.