Future Lifestyle Contemplates to merge Pepe Jeans India with Lee Cooper portfolio
Future Group is likely to merge Pepe Jeans with its own Lee Cooper portfolio. The move is to create one of the country’s biggest casual wear brands. Both the firms are in advanced stages of negotiations. The deal will be valued at more than Rs 1,200 crore, said people privy to the information.
The due diligence is over and the acquisition will be announced in a few days. Both brands put together will have retail sales of over Rs 2,000 crore.
According to Harminder Sahni, founder of retail consultancy firm Wazir Advisors, it makes sense for the Future Group to add Pepe to their portfolio as the brand has a global appeal, growing well and has a strong franchisee. Pepe can also leverage the Future Group’s retail network to strengthen its reach.
Pepe was founded by Indian-origin siblings Arun, Nitin and Milan Shah in London in 1973. In February 2015, Pepe Jeans and Hackett London were bought by L Catterton and M1 from Torreal Funds, Arta Capital and L Capital Europe. Both Pepe Jeans and Hackett London are part of the Pepe Jeans Group. Spanish entrepreneur Carlos Ortega has a 20 percent stake in the global clothing company, where he is also the CEO.
L Catterton is a common investor in both Pepe and Future Lifestyle. In May this year, L Catterton bought a 10 percent stake in Future Lifestyle. The company owns department store formats, including Central and Brand Factory, and more than a dozen brands including Indigo Nation and Lee Cooper.India News Region