Raymond acquires 75.1% stake in ColorPlus
Our Corporate Bureau
19 September 2002
Mumbai: Raymond has entered into a memorandum of understanding (MoU) with the shareholders of ColorPlus Fashions Pvt Ltd to acquire 75.1 per cent of the existing equity share capital of ColorPlus, with the balance to be acquired over a period of time.
The MoU, which was approved by the board of directors of Raymond in its meeting held on 19 September 2002, is subject to customary due diligence and negotiation of definitive agreements.
The business of ColorPlus has been initially valued at Rs 58 crore; 75.1 per cent of ColorPlus is being acquired at present and the balance will be acquired after 42 months based on the future performance of ColorPlus.
Rajendra Mudaliar and Kailash M Bhatia, director shareholders of ColorPlus, shall continue to be a part of the management of ColorPlus.
ColorPlus is a leading premium menswear branded apparels company. The company commenced operations in 1993 and, even in the face of stiff competition, is among the fastest growing brands in the Indian apparel industry.
Speaking on the transaction, Raymond CMD Gautam Singhania says: The acquisition of ColorPlus will complement our existing portfolio of brands and is a step towards further consolidating our position as a leading apparel player. We expect substantial synergies between the existing marketing and distribution network of Raymond and the product portfolio of ColorPlus.
Raymond is a leading textile and apparel company, with an extensive distribution network of about 2,300 outlets in 400 cities and towns. Raymonds existing product portfolio includes brands like Raymond, Park Avenue, Parx and Manzoni across the product categories of fabric, apparel and accessories.
Kotak Mahindra Capital Company represented Raymond in negotiating and structuring the transaction, while Ernst and Young represented the shareholders of ColorPlus.