Reliance Retail is acquiring the Indian business of LMVH-owned Sephora from Arvind Fashions Ltd (AFL).
Sephora operates 26 stores in the country offering beauty products across categories such as makeup, skincare, fragrance and haircare.
The transaction will see Reliance Retail compete with segment leaders Nykaa and the Tatas. Arvind Fashions held Sephora’s master franchisee rights in India.
Arvind Fashions will sell 100 per cent of wholly-owned subsidiary Arvind Beauty Brand Retail Ltd, which runs the Sephora India business, to Reliance Beauty & Personal Care Ltd in an all-cash deal.
Reliance Beauty & Personal Care is a wholly owned subsidiary of Reliance Retail Ventures Ltd which houses the retail business of Reliance Industries Ltd.
Arvind Fashions said in a regulatory filing that the deal has been done at an enterprise value of Rs 216 crore, which includes the sale of the entire equity stake and repayment of loans.
It added that the purchase consideration towards the sale of its entire equity stake is Rs 99.02 crore.
