Aditya Birla Fashion and Retail (ABFRL) today said it will acquire global clothing brand ‘Forever 21’ in the Indian market for USD 26 million (around Rs 175.52 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.
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.