Aditya Birla Fashion and Retail (ABFRL) on 5 July 2016 acquired global clothing brand Forever 21 in the Indian market for 26 million US dollars.
Forever 21 has a network of more than 700 stores worldwide. Its India operations reported a turnover of 262 crore rupees in 2015-16.
Highlights of the acquisition
• Aditya Birla Fashion executed a business transfer agreement with Diana Retail, Franchise of Forever 21, and DLF Brands for acquisition of the business undertaking of Diana Retail under the Forever 21 brand.
• The transaction involved acquisition of the Forever 21 Undertaking of Diana Retail with effect from 1 July 2016.
• The transaction of 26 million US dollars was an all cash deal through a business transfer agreement and not a share transfer.
• With this, Forever 21 business will form part of ABFRL’s Madura Fashion & Lifestyle division.
About Aditya Birla Fashion and Retail (ABFRL)
• Initially, the company was named as Pantaloons Fashion and Retail Ltd (PFRL).
• Later, it was formed as the consolidation of the branded apparel businesses of Aditya Birla Group - Aditya Birla Nuvo, Madura Fashion division, Pantaloons Fashion and Retail Ltd and Madura Garments Lifestyle Retail Company Ltd.
• Post consolidation, PFRL was renamed as Aditya Birla Fashion and Retail, with over 7000 points of sale in over 375 cities and towns.
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When: 5 July 2016