Aditya Birla Fashion to acquire Forever 21 in India for $26 mn

NEW DELHI: 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.