The company expects the deal to be completed in 30-45 days
In a bid to strengthen its presence in ethnic apparel and accessories, Aditya Birla Fashion and Retail Ltd (ABFRL) on Monday said it will acquire ethnic wear brands Jaypore and TG Apparel & Decor.
Aditya Birla Fashion and Retail will acquire Jaypore for an enterprise value of upto Rs 110 crore, subject to closing adjustments.
The company expects the deal to be completed in 30-45 days.
Launched in 2012, the online and offline retailer Jaypore that offers curated collections of handmade, handwoven and handcrafted apparel, jewellery, home textiles and accents, based on craft forms, from across the country, clocked a revenue of Rs 38.9 crore in FY19.
“The Board of Directors today approved the signing of share purchase agreement to acquire Jaypore. The business comprises online and offline operations. The proposed acquisition is subject to necessary statutory approvals and signing of definitive agreements,” ABFRL said in a statement.
The board also approved entering into a share purchase agreement with the existing shareholders of TG Apparel & Decor, which retails ethnic fashion, both online and offline, the company added.
TG Apparel & Decor which is into apparel and accessories space had a turnover of Rs 33.7 crore in FY19 and ABFRL will acquire 100 per cent stake for an equity value of upto Rs 25 lakhs subject to the book value on closing.
Commenting on the 100 per cent acquisition of Jaypore, ABFRL Managing Director Ashish Dikshit said, “Ethnic wear is the largest segment in the Indian fashion apparel market. While we have built a diversified portfolio of brands across different segments, ethnic wear space is currently under- represented in our bouquet of offerings to consumers.”
The proposed acquisition is, therefore, a great strategic addition to our portfolio and gives us a strong footing in a segment that is growing in double digits, he said.
“Jaypore is a brand with strong equity and with a differentiated offering of products based on Indian crafts. It provides a great platform for us to build a strong presence in the ethnic segment and in accessories and home segment. This acquisition will further strengthen our leadership position in the branded fashion space,” he added.
Aditya Birla Fashion and Retail is a part of USD 44.3 billion Aditya Birla Group.
With revenue of Rs 8,118 crore it has a strong network of 2,714 brand stores across 750 cities in the country, with brands like Louis Philippe, Van Heusen, Allen Solly, Peter England and value fashion store brand Pantaloons. The International Brands portfolio comprises- The Collective, Ted Baker, Ralph Lauren, American Eagle and Simon Carter.
Shares of Aditya Birla Fashion and Retail closed at Rs 219.30 on the BSE, up 0.34 per cent from its previous close.