Aditya Birla Fashion and Retail (ABFRL) has announced that it will acquire global clothing brand ‘Forever 21’ in the Indian market for $26 million (around Rs.175.52 crore).

“The company has on Tuesday 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 eCommerce 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. Sharing details of the acquisition, the company said: “The transaction involved acquisition of the Forever 21 undertaking of Diana Retail with effect from 1 July through a business transfer agreement not share transfer.”

In May this year, ABFRL announced its plans to 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.

With the acquisition of Forever 21 India business, ABFRL aims to create a strong foothold in the womenswear business in the western wear segment. Currently, the western womenswear segment is growing at more than 20 per cent. The proposed acquisition will further strengthen leadership position of ABFRL in the branded fashion space.

The young demographics of the country and emergence of fast fashion segment offers opportunity for rapid growth for the brand, said Jatin Malhotra, Director, Global Expansion, Forever 21.

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