Aditya Birla Fashion and Retail (ABFRL) will acquire US-based clothing brand Forever 21 India from existing local franchise partner Diana Retail.
The Rs.175-crore (US$26 million) transaction involves a business transfer agreement, not share transfer, says ABFRL in a filing with the Bombay Stock Exchange.
The Forever 21 business will become part of ABFRL’s Madura Fashion & Lifestyle division.
ABFRL was formed after the consolidation of the branded apparel businesses of the Mumbai-based Aditya Birla Group, one of India’s largest conglomerates. It has a presence in 375 Indian cities.
Forever 21 has a network of more than 700 stores worldwide.
“With the acquisition of Forever 21, we aim to create a strong foothold in the womenswear business in the western-wear segment, which is growing at 20 per cent,” ABFRL MD Pranab Barua said in May when the company announced it would enter into a deal to acquire Forever 21’s online and offline rights for the Indian market.
In March, Inside Retail Asia reported that Flipkart’s online fashion store Myntra, which sells Forever 21 products, was seeking to take over management of the US brand’s India brick-and-mortar stores.
