Acquisitions seem to be the flavor of the season. Brands are collaborating with each other in order to see a mutually beneficial growth. The latest to join the bandwagon is Kishore Biyani’s Future Lifestyle. As per sources, Future Lifestyle is in talks with Pepe Jeans to acquire its India unit.
About Pepe Jeans
Pepe Jeans Group that currently own the Pepe Jeans India fully, has L Catterton, owned by Moet Hennessy Louis Vuitton also know as LVMH and investment firm M1 Group as majority stakeholders. L Catterton is a common investor with both Future Lifestyle and Pepe.
The Deal
If the deal comes through Pepe Jeans India would be merged with Future Lifestyle’s Lee Cooper range, making it a new entity into India’s largest casual wear brands. The deal is valuated at Rs 1,200 crore. The acquisition is likely to be announced in a few days time and together both brands will have retail stores of over Rs 2,000 crore.
The History
Indian-origin brothers Arun, Nitin and Milan Shah in London founded Pepe Jeans in 1873. However, the company has seen a change in management since then. L Catterton and M1 bought Pepe Jeans and Hackett London, both part of Pepe Jeans Group, from Torreal Funds, Arta Capital and L Capital Europe in February 2015
Future Lifestyle, on the other hand, owns brands like Indigo Nation and Lee Cooper and owns a chain of department store formats like Brand Factory and Central. L Catterton bought a 10% stake in Future Lifestyle in May this year.
Benefits
As per market experts, it’s a win-win for both brands, as adding Pepe Jeans, which has a global appeal, add value to Future Lifestyle while on the other hand, Pepe Jeans would be able to extend its reach by using Future Lifestyle’s retail strength.
