Aditya Birla Fashion and Retail Limited has recently announced that it has completed the acquisition of the Indian business of US fashion brand, Forever 21, for more than Rs 175 crores (USD 26 million).
The company has also been appointed as the exclusive franchisee for the Forever 21 brand in the country.
In a BSE filing, ABFRL said, “The company has on Tuesday 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.”
Diana Retail is the franchisee of Forever 21 brand in India. It clocked a turnover of approximately Rs 262 crore in FY16, up from Rs 213 crore in FY15 and Rs 105 crore in FY14, the filing said.
Sharing details of the transaction, the company said: “The transaction involved acquisition of the Forever 21 undertaking of Diana Retail with effect from 1 July through a business transfer agreement not share transfer. The consideration for acquisition is $26 million”.
Forever 21 is among the fastest growing fashion retailers in the world with a network of more than 700 stores worldwide. Its India operations reported a turnover of Rs.262 crore in 2015-16.
In May this year, Aditya Birla Fashion and Retail (ABFRL) announced that it will enter into a binding MoU with Forever 21 to acquire its online and offline rights for the Indian market.
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.
Post consolidation, PFRL was renamed as Aditya Birla Fashion and Retail, with over 7,000 points of sale in over 375 cities and towns.