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Value fashion retailer V-Mart Retail Ltd on Thursday said it has signed definitive agreements to acquire assets of Unlimited retail business from Arvind Lifestyle Brands Ltd (ALBL) for a cash consideration. The strategic move will enable V-Mart Retail to strengthen its presence in southern and western India.
Arvind Lifestyle Brand Ltd is a wholly-owned subsidiary of Arvind Fashions Ltd.
Retail stores
Unlimited operates a chain of 74 value fashion retail stores across south and west India and retails fashion apparel and accessories for men, women and children at affordable prices.
“As part of the transaction, V-Mart will acquire the assets of all stores, warehouse, inventory as well as the brand ‘Unlimited’ at their book value, with an estimated outlay of about ₹150 crore at closing, and certain contingent payments based on certain milestones achieved in these stores over next few years, post the acquisition,” the statement added.
V-Mart Retail, which has a strong presence in Northern and Eastern India, said the acquisition will enable it to foray in the southern region and widen its geographical footprint.
Lalit Agarwal, Chairman & Managing Director of V-Mart Retail Ltd, said, “The business had been turned around by Arvind Fashions, and fits well with our strategy of expanding our regional presence as well as adding capabilities in select categories. With this transaction, V-Mart will now operate 356 stores across 25 States with a total area of 30.8 lakh sq ft.”
To repay debt
ALBL intends to utilise the funds for repayment of debt and for working capital purposes.
Shailesh Chaturvedi, Chief Executive Officer, Arvind Fashions, said, “We are delighted to find a strong home in V-Mart for Unlimited. We had created a scalable format with significant product capabilities in value retail, which has a large potential. However, in line with our strategy of focusing on our 6 high conviction brands, we decided to exit the business. This would help us put capital behind growing our six focus brands, helping generate significant shareholder value.”
The six brands include US Polo Assn., Tommy Hilfiger, Arrow, Flying Machine, Calvin Klein and Sephora.
The companies said that the completion of the transaction is subject to necessary approvals and customary closing conditions.
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