Future Group eyes to expand its portfolio with the acquisition of Pepe Jeans India

Source: https://in.apparelresources.com

India’s Future Group has announced that it is eyeing to acquire the Spanish denim and casual wear brand Pepe Jeans’ Indian arm and merge it with its own brand Lee Cooper, in a bid to create the nation’s biggest casual wear label. Notably, Pepe Jeans India is a subsidiary brand of Spain-based Pepe Jeans Group, that has L. Catterton and M1 Group, a Lebanese investment firm, as the majority stakeholders.

A spokesperson involved in the matter affirmed the media that L Catterton is a common investor in both the organisations and the deal is expected to cross Rs. 1,200 crores. “The due diligence is done and the deal will take place in a couple of days and both the brands will be having retail sales of over Rs. 2,000 crores,” he added.

It is important to mention here that, L. Catterton bought a 10 per cent share in Future Group’s Future Lifestyle that runs stores like Brand Factory and Central as well as owns over a dozen brands such as Lee Cooper and Indigo Nation.

Currently, Pepe Jeans operates over 200 brand outlets across India and its net sales have been recorded to be Rs. 427.6 crores and profit after tax was registered at Rs. 49.2 crores during the financial year that ended in March last year.

Additionally, Harminder Sahni, Founder, Wazir Advisors, a retail consultancy firm said that the deal can yield fruitful results for both the brands, as Pepe Jeans has a global appeal which can benefit Future Group, while the Spanish brand can leverage the retail network to enhance its reach in the country.

Categories: Apparel, Asia, Brands, Business, India, Retail

Tags: , , , , ,

%d bloggers like this: