Strengthening its overseas distribution network, House of Pearl Fashions has acquired 50 per cent stake in UK-based FX Imports, for an undisclosed amount.
“There is a great potential to optimise synergies of both companies which would help rapid growth of their business and improve profitability,” said Deepak Seth , chairman, House of Pearl.
He clarified that the acquisition was done through the UK-based subsidiary of the company Poeticgem Ltd. The acquisition would be funded through internal accruals.
House of Pearl house has the option to buy the rest of 50 percent stake from promoters of FX Import, in next five years.
Through this acquisition, FX Import can offer wider product range to its existing customers and can leverage House of Pearl’s sourcing and warehousing capabilities in the UK.
FX Imports is a marketing company catering to mid-market fashion retailers. On the other hand, House of Pearl is a manufacturer, marketer and distributor of garments, who operates in over 10 countries, and has over 150 tie ups with compliant manufacturers.
Recently, House of Pearl had tied-up with European marqee brand Lerros to set up retail chain in India. It also plans to acquire retail and distribution firms in the US and Europe.
FX Imports reported revenues of 800 million rupees in the previous fiscal year and is aiming at annual revenues of two billion rupees in three years.
– Bengaluru Bureau