Mumbai: Fabric and apparel maker Bombay Rayon Fashions Ltd will acquire the `Guru' brand and other related retail businesses from Italian firm Jam Session Holdings, for €33 million
The acquisition is being made through the company's wholly-owned subsidiary in the Netherlands, BRFL Europe B.V. Netherlands, Bombay Rayon Fashions said in a filing with the Bombay Stock Exchange.
''The board of directors of the company, at its meeting held on 24 April, approved its wholly owned subsidiary BRFL Europe BV Netherlands entering into terms of understanding for taking over the brand `Guru` and other related retail business as a going concern from Jam Session Holdings s.r.l., for a total consideration of Euro 33 million,'' the company said in its filing..
The acquisition would be made by exercising the call/put option within 42 months and till then it will operate the brand and business on lease basis, it added.
Bombay Rayon Fashions also approved the scheme of amalgamation of its wholly owned subsidiary Leela Scottish Lace into the company, subject to necessary approvals.
Based in Mumbai, Bombay Rayon Fashions designs, sources and markets textiles and employs over 5,000 workers.
The company had reported compounded annual revenue growth (CARG) rates of over 100 per cent for the last three years.
Bombay Rayon exports 100 per cent of its garments to Europe and the US. Major labels like Tom Tailor, DKNY and Liz Clairborne source their garments from BRFL.