Aditya Birla Fashion and Retail to buy global clothing brand 'Forever 21' for Rs175.5 cr
05 Jul 2016
Aditya Birla Fashion and Retail (ABFRL), owner of Pantaloons, today struck a deal to buy the Indian market of global clothing brand 'Forever 21' for $26 million (Rs175.5 crore).
"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.
Founded in 1984, Los Angeles, California-based Fast-fashion retailer 'Forever 21' operates under the Forever 21, XXI Forever, For Love 21, Heritage 1981, and Reference banners.
'Forever 21' sells men's and women's clothing and accessories through more than 600 stores in the US, Canada, Europe, Japan, Korea, Philippines and India, and generates annual sales of $4.4 billion.
The deal comes two months after ABFRL said that it will enter into a binding MoU with Forever 21 to acquire its online and offline rights for the Indian market, and a year after its private equity arm acquired Creative Lifestyles, the flagship company of the Mumbai-based Creative Garments group, which owns women's apparel brands such as 109F, Fusion Beats and O2xygen.
Aditya Birla group has been expanding its footprints in fashion retail following its decision to merge fashion retail business under Madura Fashions and Madura Lifestyle with Pantaloons Fashion and Retail to create the country's largest branded apparel player, valued at Rs12,000 crore.
