Metro Brands Ltd acquires Cravatex Brands Ltd

Metro Brands Ltd, India's leading footwear retail chain, has signed a share purchase agreement to acquire 100% shareholding of Cravatex Brands Ltd., to expand its presence in the sports and athleisure space in India. Cravatex Brands Ltd is a retail, brand licensing, distribution and sourcing company that has the exclusive long-term license for the Italian sportswear brand FILA, owns sportwear brand Proline, and represents other international brands.

The acquisition is based on fulfilment of closing conditions by both parties. Paragon Partners, an existing investor in Cravatex Brands Limited, will also sell its entire stake as part of this transaction.

"This acquisition fits our strategic vision at Metro Brands Ltd to leverage our expertise in brick- and-mortar and e-commerce retail while serving the growing need of the consumer in the sports and athleisure category. We are truly committed to our vision to be India's largest specialty footwear and accessory retailer. With this acquisition, we look forward to elevating the sportwear landscape in India," said Nissan Joseph, Chief Executive Officer, Metro Brands Ltd.

Through this acquisition Metro Brands Ltd. will receive exclusive rights for Proline and for the sale and distribution rights of FILA across formats, including Exclusive Brand Stores, Multi Brand Stores, Airport Stores, Distribution, Online Marketplaces and Webstores, in India.

Over the last century, FILA has been there for iconic moments, accompanying extraordinary individualsin pursuit of sport - those who courageously challenge limits and defy expectations through a seamless combination of power and grace. From its humble textile beginnings in Biella, Italy in 1911 to its historic introduction of colour on the tennis court in 1973, the brand has always taken pride in creating designs as bold and breath-taking as its wearers. With a philosophy of innovation and a commitment to performance and sophistication, FILA continuesto make a statementwith stylesthat are novel in aesthetics and effective in function.

Proline, the original Indian apparel brand born in 1983 bridged the gap in the Indian market for good quality Indian sportswear. Intrinsically linked to sport with brand ambassadors like Vinod Kambli, Ravi Shastri and Sandip Patil, the brand is known for its active and casual clothing that fits different facets of life, all available at competitive prices.

Shares of Metro Brands Limited was last trading in BSE at Rs. 882.25 as compared to the previous close of Rs. 896.00. The total number of shares traded during the day was 59560 in over 3093 trades.

The stock hit an intraday high of Rs. 927.50 and intraday low of 877.00. The net turnover during the day was Rs. 53196199.00.

Source : Equity Bulls

Keywords

MetroBrands INE317I01021 Footwear SPA Acquisition CravatexBrands FILA