- Angela Gonzalez-Rodriguez |
Indian apparel giant Aditya Birla Fashion (ABFR) announced Tuesday the acquisition of US-based Forever21 business in India. The deal was sealed at 26 million dollars. The company announced the business transfer agreement in a filling to the BSE.
The company has today executed a business transfer agreement with Diana Retail and DLF Brands for acquisition of the business undertaking of Diana Retail. Under the Forever 21 brand and also through e-commerce channel on a going concern basis, in the Indian market, ABFRL said in a BSE filing.
Diana Retail is the franchisee of Forever 21 brand in India. The business transfer will be effective from July 1 and won´t include any share transfer.
Pantaloons’ owner buys the Forever 21 business in India
The price tag for the acquisition was set at 26 million dollars, confirmed both parties, which entered into a binding conversation with Forever 21 to acquire its online and offline rights for the Indian market.
India operations reported a turnover of 3,877,600 dollars in 2015-16. ABFRL was formed after the consolidation of the branded apparel businesses of Aditya Birla Group, comprising Aditya Birla Nuvo, Madura Fashion division and ABNLs subsidiaries — Pantaloons Fashion and Retail Ltd and Madura Garments Lifestyle Retail Company Ltd — in May 2015.
Aditya Birla explains that this acquisition is “in line with our strategic intent to create the largest integrated branded fashion player in the country.”
In fact, there are two key factors for the brand to thrive: the young demographics of the country and the emergence of fast fashion segment, stresses Jatin Malhotra, Director, Global Expansion, Forever 21.
“With the acquisition of Forever 21 India business, we aim to create a strong foothold in the womenswear business in the western wear segment. Currently, the western womenswear segment is growing at more than 20 per cent. The proposed acquisition will further strengthen leadership position of ABFRL in the branded fashion space,” Pranab Barua, Managing Director, ABFRL further added.
On the other hand, Forever 21 expects that its partnership with ABFRL will help establish it as one of the largest womenswear brand in the country.
Image:Forever 21 Web