Fast Retailing acquires majority stake in J Brand
Fast Retailing, the Japanese owner of the Uniqlo clothing chain, has acquired a majority stake in US denim maker J Brand Holdings.
The group has bought the 80.1% share from Star Avenue Capital for $290 million. The transaction is expected to close by the end of December, subject to regulatory approvals. J Brand management will continue to hold the remaining 19.9% stake in the company.
Fast Retailing said the acquisition will help to extend its footprint across the luxury apparel category in the US. It will also enable the group to leverage J Brand's know-how in the area of premium denim and to strengthen the group's capability in developing denim products.
Commenting on the acquisition, Tadashi Yanai, chairman, president and chief executive officer of Fast Retailing said: "Our planned acquisition will extend the Fast Retailing Group's brand portfolio among the affordable luxury apparel category and strengthen our group's capability in the denim category.
"The acquisition will create synergies between the companies, enhancing the positions of both Fast Retailing and J Brand as fashion leaders."
The existing J Brand management team, led by CEO Jeff Rudes, will continue to lead and operate the company.
Rudes added: "We are very proud of the platform we have built together with Star Avenue Capital and its partners, Irving Place Capital and CAA, over the last several years, and we look forward to our next phase of growth."
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