UK’s Superdry to sell its South Asian IP to Reliance Retail for $48.27 million

UK clothing brand Superdry announced on Wednesday that it has signed an IP joint venture agreement with Reliance Brands Holding UK for the sale of Superdry’s intellectual property (IP) assets, including the Superdry brand and related trademarks in India, Sri Lanka and Bangladesh. Reliance Brands and Superdry will own 76 per cent and 24 per cent of the joint venture respectively.

RBUK is held by Mukesh Ambani's Reliance Retail Ventures through its subsidiary Reliance Brands that has been Superdry’s franchise partner in India since 2012. Reliance Brands will continue to oversee the brand operations in India, Sri Lanka and Bangladesh.

The company said that the consideration for the sale of the South Asian IP is £40.0 million or $48.27 million. Superdry is estimated to receive gross cash proceeds of £30.4 million or $36.64 million.

Superdry, since its partnership with RBL in 2012, has expanded rapidly in India. It said that the brand has attractive potential in India, considering the backdrop of the growing economy, its growing population of affluent shoppers, and ever-increasing apparel consumption rates. Superdry stated that Reliance Brands is best placed, through its majority IP ownership stake to maximise the opportunity.

Superdry will transfer its IP assets in the territories to the new JV entity and invest £9.6 million or $10.8 million in the entity. Reliance will continue to be supplied finished goods by Superdry, sold at standardised commercial terms, it said.

The transaction, approved by the Superdry board is conditional on the approval of shareholders and lenders. Once the conditions are met within three months since the date of the agreement, the transaction will take place within 10 days.

Reliance Brands, the premium retail arm of RRVL, operates over 18,000 stores across India, with over 50 different luxury fashion brands. It has its presence in 7,000 towns and a total.

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