Kewal Kiran Clothing acquires 50 per cent stake in Kraus Casuals for a total consideration of Rs 166.51 crores. The equity stake shall be acquired through primary infusion and secondary purchase.
KCPL which currently operates under the brand 'KRAUS jeans', is in the business of manufacturing, selling, designing and exporting women's clothing primarily in women, teen and kids casual and denim bottom and top wear.
The business was earlier operating under a partnership firm Oriental Trading Company ("OTC"). KCPL and OTC have entered into a Business Transfer Agreement (BTA) pursuant to which the Partners (viz., Ravi Punjabi, Sunil Punjabi, Sushil Punjabi and Atmaram Punjabi) of OTC have agreed to transfer the business of partnership as a going concern to KCPL.
Kraus through its presence in 1,000+ large format stores including Lifestyle, Pantaloons, Reliance, Shoppers Stop, Lulu etc. and network of 8 EBOs will complement KKCLs widespread network of 488+ Exclusive Brand Outlets, 80+ Distributors covering 3,000+ MBOs and presence across national chain stores in more than 2000+ counters spread across India.
Kewalchand Jain, Chairman & Managing Director, KKCL said, "Today’s acquisition marks a significant milestone in our journey, aligning with our strategic vision of expanding and diversifying our Denim & Casual Wear portfolio. It's not only our maiden acquisition in KKCL's history but also a testament to our commitment to growth and innovation. We warmly welcome Kraus into our fold. We anticipate this transaction to be earnings per share accretive and also generating enduring value for our shareholders in the years ahead.”
Ravi Punjabi, Director, Kraus Casuals said, "We have always looked out for opportunities to reach more people for our growing product range in Women's Denim & Casual apparel market. In KKCL, we have found a perfect strategic partner to help us broaden our market segment, channel partners and significantly grow our brand while remaining faithful to the founding principle of Kraus. Our combined expertise in brand building, marketing and distribution will ensure Kraus rises to its true potential. KKCL's resources and knowledge will be an incredible asset for us, and the team cannot wait to get started."
Marathon Capital Advisory, Bansi S. Mehta & Co., Chartered Accounts and Wadia Ghandy & Co. Advocates, Solicitors and Notaries acted as an Advisor to KKCL in the strategic acquisition.
