By Elena Vardon
Superdry said it has agreed to sell its intellectual-property assets in India, Sri Lanka and Bangladesh to a joint-venture vehicle with Reliance Brands Holding UK for around 40.0 million pounds ($48.3 million).
The British clothing brand on Wednesday said it expects to get GBP30.4 million in gross cash proceeds for the transaction, or around GBP28.3 million after fees and taxes.
The intellectual-property assets include the Superdry brand and related trademarks in the South Asian countries, it said, adding that the agreement includes provisions for long-term collaboration including on the use of new designs as well as a license to continue manufacturing goods in the three countries.
It added that South Asian IP made around 1.8% of total group sales in fiscal 2023, contributing GBP11.0 million in revenue and pretax profit of around GBP2.6 million.
The London-listed group said it will invest GBP9.6 million in the joint-venture entity and own 24% of it, while Reliance Brands–which has been Superdry’s exclusive franchise partner in India since 2012 through its subsidiary–will own the remaining 76%.
The deal will close 10 business days after approval is obtained from Superdry’s lenders and shareholders, it added.
Write to Elena Vardon at elena.vardon@wsj.com
Read the full article here