Arvind Fashions Limited (AFL), India’s leading casual and denim player, has signed definitive agreements with Reliance Beauty & Personal Care Limited (RBPCL) to sell its wholly owned subsidiary Arvind Beauty Brand Retail Limited (ABBRL) which runs its Sephora India business, in an all cash transaction. RBPCL is a wholly owned subsidiary of Reliance Retail Ventures Limited.
AFL intends to utilise the proceeds to invest in growth of its brands portfolio and repayment of debt, a statement said.
Sephora operates 26 stores across the country offering prestige beauty products across categories such as makeup, skincare, fragrance, haircare.
With this sale, AFL will emerge as a pure-play branded fashion company and will further sharpen its focus on profitably growing its 5 marquee industry leading brands which include U.S. Polo Assn., Tommy Hilfiger, Arrow, Flying Machine and Calvin Klein.
Speaking on this transaction, Shailesh Chaturvedi, Chief Executive Officer, Arvind Fashions, said, “We are proud to have scaled up Sephora India business from 4 stores to 26 currently, delivering one of the highest sales productivity in premium beauty in India and would like to thank Sephora for their partnership. This transaction will help AFL put capital behind growing our 5 high conviction brands and accelerate the journey towards higher free cash flow and return on capital employed”
“We are equally grateful to Arvind for their partnership over the past eight years to get us positioned for the next stage of growth” said Alia Gogi, Asia President, SEPHORA.
Metta Capital acted as the exclusive financial advisor and Anagram Partners acted as the legal advisor to AFL for this transaction.
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