Metro Brands Limited signed a share purchase agreement to acquire Cravatex Brands Limited from Cravatex Limited and Paragon Partners for an enterprise value of INR 2 billion.

Metro Brands Limited (NSEI:METROBRAND) signed a share purchase agreement to acquire Cravatex Brands Limited from Cravatex Limited (BSE:509472) and Paragon Partners for an enterprise value of INR 2 billion on October 19, 2022. The enterprise valuation is subject to pre and post-closing adjustments based on the outstanding debt of CBL as at the completion date. Cravatex Brands generated a revenue of INR 1.57 billion and had net worth of INR -0.41 billion for FY 2021- 22.

The transaction has been approved by the Board of Directors of Metro and Cravatex Limited. The acquisition is based on fulfilment of closing conditions by both parties, subject to approval of the shareholders of Cravatex Limited and statutory approvals. The transaction is expected to be completed within ninety (90) days.

Ernst & Young Private Limited acted as financials adviser to Cravatex Brands Limited on this transaction. A team consisting of Ankit Mishra of Anagram Partners acted as legal advisor to Metro Brands Limited. A team consisting of Kunal Doshi of Veritas Legal acted as legal advisor to Cravatex Brands Limited.