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Last Updated : May 10, 2019 03:12 PM IST | Source: Moneycontrol.com

11 companies interested in acquiring Indian arm of Pepe Jeans: Report

The investment banking arm of the Kotak group is advising Pepe's parent company on this deal and has received 11 bids for it yet

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Almost a dozen domestic retailers like Kishore Biyani's Future Group and Reliance Retail along with private equity firms are in the fray to acquire the Indian arm of Pepe Jeans, The Economic Times reported.

Sources told the newspaper that as many as 11 entities have envisaged interest in acquiring the Indian unit of the jeans brand, which is headquartered in Barcelona.

Moneycontrol couldn't independently verify the report.

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Majority shareholders in the company are L Catterton and Lebanese investment firm M1Group. CEO Carlos Ortega owns 20 percent stake in the company.

The investment banking arm of the Kotak group — Kotak Investment Banking — is advising Pepe's parent company on this deal and has received 11 bids for it yet, the report said.

Pepe Jeans is a popular brand in India with over 200 branded outlets. It was founded by Indian origin Arun, Nitin and Milan Shah in 1973 in London. It has had various owners since then.

Torreal Funds, Arta Capital and L Capital Europe sold Pepe to its current owners L Catterton and M1 in February 2015. The owners are hoping to rake in Rs 2,000 crore for the Indian arm.

In October last year, five foreign funds like KKR, Carlyle and General Atlantic had submitted their offers for the company. The Future Group had also entered the competition at this point. Biyani's Future Lifestyle may want to merge its homegrown brand Lee Cooper with Pepe.

Reliance is also hoping to boost its fashion business. Its brand Reliance Trends surpassed the Rs 10,000 crore revenue mark in FY19.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd

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First Published on May 10, 2019 03:02 pm
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