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. Giving details of the transaction, the company said,
The transaction involved acquisition of the Forever 21 Undertaking of Diana Retail with effect from July 1 through a business transfer agreement not share transfer. The consideration for acquisition is USD 26 million.
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. 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. 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.
A month back, Aditya Birla Fashion and Retail (ABFRL) had said it will be entering into a binding MoU with global clothing brand Forever 21 to acquire its online and offline rights for the Indian market.
The proposed acquisition is in line with our strategic intent to create the largest integrated branded fashion player in the country. 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 had said.
Forever 21 expects that its partnership with ABFRL will help establish it as one of the largest womenswear brand in the country.
The young demographics of the country and emergence of fast fashion segment offers opportunity for rapid growth for the brand, Jatin Malhotra, Director, Global Expansion, Forever 21 had said.