V-Mart Retail Limited (BSE:534976) signed a definitive agreement to acquire Assets of Unlimited retail business of Arvind Lifestyle Brands Limited for INR 1.5 billion on July 21, 2021. The consideration will be paid in cash. Arvind Lifestyle Brands Limited would receive cash consideration upon the closure of transaction and thus, will fully recover the capital employed in the business. In addition, there are contingent payments to be received, based on certain milestones achieved by V-Mart Retail Limited over next few years. The acquisition includes brands such as US Polo Assn., Tommy Hilfiger, Arrow, Flying Machine, Calvin Klein and Sephora. Arvind Lifestyle Brands Limited intends to utilise the funds for repayment of debt and for working capital purposes. For the year ended March 31, 2021 Assets of Unlimited retail business of Arvind Lifestyle Brands Limited recorded the revenue of INR 2.89 billion. The completion of the transaction is subject to necessary approvals from V-Mart Retail Limited board and consummation of due diligence. As of July 21, 2021 V-Mart Retail Limited board approved the deal. The deal is expected to close within 60 days. Vikrant Kumar and Arjun Rajgopal, supported by Mohit Saraf and Gayatri Roy of Saraf & Partners acted as legal advisors to V-Mart in the transaction. Metta Capital Advisors LLP acted as financial advisor to V-Mart Retail Limited.
V-Mart Retail Limited (BSE:534976) completed the acquisition of Assets of Unlimited retail business of Arvind Lifestyle Brands Limited on September 2, 2021. Arvind Lifestyle Brands Limited received part consideration of INR 1.3 billion from V-Mart Retail Limited. The balance consideration will be received as per the terms of the agreement.
V-Mart Retail Limited is an India-based retail store chain that offers readymade garments and accessories. The Company is engaged in value retailing through a chain of stores situated in various places in India. The Company operates through two segments: Retail Trade and Digital Marketplace. The Retail Trade segment is engaged in domestic sales to customers at stores. The Digital Marketplace segment is engaged in the commission and other income by providing a Limeroad platform for vendors. Its general merchandise includes footwear, home furnishings, kitchenware, toys and games, bags and luggage, and crockery. Its Kirana bazaar includes fast-moving consumer goods (FMCG) products, packaged food items, beauty, and personal care, home care, and staple products. It operates through approximately 445 stores across 25 states. Its stores are located in states/cities, including Uttar Pradesh, Delhi, Bihar, Jharkhand, Haryana, Uttarakhand, Madhya Pradesh, and West Bengal, among others.
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