Reliance Brands to acquire majority ownership of Superdry IP for Indian territory

Reliance Brands acquires majority ownership of Superdry IP for India, Sri Lanka, Bangladesh; RBUK and Superdry to own 76% and 24% of joint venture entity; consideration for IP is £40 million; Superdry UK to maintain stake and support brand development.

Reliance Brands Ltd. (RBL), through its wholly-owned subsidiary in the U.K. (RBUK), has signed a definitive agreement to acquire majority ownership of Superdry IP for the Indian territory from U.K.-based Superdry Plc, which is known for its collections of clothing, accessories and footwear that are sold around the world.

“The joint venture entity will acquire Superdry’s intellectual property assets for the India, Sri Lanka, and Bangladesh territories. RBUK and Superdry will own 76% and 24% of the joint venture entity, respectively,” Reliance Brands, a part of Reliance Retail, said in a statement.

The consideration for the IP is £40 million, which is estimated to result in Superdry Plc receiving gross cash proceeds of £30.4 million (approx. £28.3 million net of fees and taxes) from RBUK, the statement added.

Reliance Brands had in 2012 signed a long-term franchise agreement with Superdry Plc and had introduced the brand in India.

“Superdry’s unique fusion of British heritage, American styling, and Japanese graphics has carved a niche among fashionable young Indian consumers. The brand has expanded rapidly to 200 points of sale across 50 cities. E-commerce continues to drive incremental growth for the brand,” the statement added.

Darshan Mehta, MD, Reliance Brands said, “Superdry has come to define urban cool in India for more than a decade. The journey has been rewarding & fun in equal parts due to working with the hugely talented Superdry team and the sense of camaraderie led by Julian.”

Superdry UK will maintain a stake in the brand for the Indian territory and will continue to support brand development through sharing expertise in design, product development, and marketing.