India's Arvind Fashions to sell Sephora retail division to Ambani's Reliance (updated)

ARVIND FASHIONS

03/11/2023 08:19

(Adds details on deal, background, shares)
       BENGALURU, Nov 3 (Reuters) - Arvind Fashions  ARVF.NS 
said on Friday it will sell its beauty brands division, which
retails products of LVMH-owned  LVMH.PA  beauty chain Sephora,
to billionaire Mukesh Ambani's retail unit Reliance Retail for
990.2 million rupees ($11.89 million).
    The deal, which will boost Reliance's portfolio of
international brands, comes months after local media reported
that Sephora and Reliance Retail had abandoned talks to form a
retail partnership for the Indian market.
    Reliance launched its own beauty retail platform, Tira, in
April to take on the likes of Nykaa  FSNE.NS  and the Tata
Group.
    The deal was made at an enterprise value of 2.16 billion
rupees, Arvind Fashions said in a regulatory filing. 
    Shares of Arvind Fashions surged 11.5% after the news,
trimming some gains to last trade up 7.3%.
    The beauty division that hosted Sephora reported a revenue
of 3.37 billion rupees in fiscal 2023, or about 7.6% of Arvind
Fashion's total revenue.

($1 = 83.2510 Indian rupees)

 (Reporting by Chris Thomas in Bengaluru; Editing by Janane
Venkatraman)
 ((chris.thomas@thomsonreuters.com;))