Forever 21
Forever 21Reuters File

Aditya Birla Fashion and Retail Ltd. (ABFRL) will acquire Los Angeles-based global clothing brand Forever 21's India business for $26 million (Rs. 175 crore).

ABFRL said in its regulatory filing that the company executed a business transfer agreement with Diana Retail and DLF Brands (the promoters of the retail entity) to acquire from them the exclusive online and offline rights to the global brand Forever 21 for the Indian market and its existing store network in India.

Forever 21's clothes, artificial jewellery, accessories and all related merchandise would now be a part of ABFRL. The fashion and retail conglomerate was itself formed after consolidating branded apparel business of Aditya Birla Group's Nuvo subsidiaries such as Pantaloons Fashions and Retail, Madura Garments, Lifestyle Retail stores in May 2015, said PTI.

ABFRL said the acquisition would help the company create a strong foothold in the women's wear business, especially the western wear segment.

The company highlighted that the transaction was an all cash deal through a business transfer agreement and not a share transfer.

Diana Retail was incorporated in India in 2007 and has 12 stores in the country currently, as well as its e-commerce channel. According to the regulatory filing, the company's turnover as of financial year 2016 was approximately Rs. 262 crore.