Indian Aditya Birla Fashion buys exclusive rights to Reebok in India
Adds agreement details
BENGALURU, December 14 (Reuters) – Aditya Birla Fashion and Retail Ltd (ABFRL) in India ADIA.NSsaid on Tuesday that he would buy exclusively rights to sell global sportswear Brand Reebok products online and offline in the Indian market.
ABFRL shares jumped 4.6% to 279 rupees after the announcement.
The agreement will come into effect once worldwide ownership of the Reebok brand is transferred from Adidas ADSGn.DE to Authentic Brands Group AUTH.Nin a â¬ 2.1 billion ($ 2.37 billion) acquisition announced in August.
Large Indian Fashion Retailers have been shopping for big brands this year, aiming to strengthen their positions in one of the the fastest in the country growing segments. ABFRL took a 51% stake in luxury wedding clothing brand Sabyasachi, while rival Reliance Industries Ltd RELI.NS retail unit bought 52% of designer brand Ritu Kumar.
ABFRL said the transaction also includes the purchase of certain assets from Reebok India Company, including inventory, current assets and Liabilities. He added that the long-term license agreement gave it the exclusive rights to sell Reebok products in India and other countries in Southeast Asia.
The company is waiting spend around 750 million rupees ($ 9.88 million) to 1 billion rupees ($ 13.17 million) at to buy Reebok inventories and other current assets and liabilities.
ABFRL operates over 3,000 stores in India and is the exclusive retailer of Forever 21, American Eagle Outfitters and Ralph Lauren notably have designer clothes in the country.
($ 1 = 75.9250 Indian rupees)
($ 1 = â¬ 0.8867)
(Reporting by Chandini Monnappa in Bangalore; Editing by Rashmi Aich and Devika Syamnath)
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