Listed apparel player Kewal Kiran Clothing Ltd, the owner of brands like Killer Jeans, has acquired 50% stake in women’s denim maker Kraus Casuals for Rs 166.5 crore (around $20 million).
The deal was carried out in a mix of primary infusion and secondary transactions. The companies, however, did not disclose the split.
The acquisition paves a way for Kewal Kiran to enter the women’s denim category and strengthen its presence in India and UAE’s markets. It will also likely facilitate futher geographical expansion.
Marathon Capital Advisory Private Limited, Bansi S. Mehta & Co, Chartered Accounts and Wadia Ghandy & Co. Advocates, Solicitors and Notaries acted as advisers to Kewal Kiran Clothing in the transaction.
Kraus Casuals Pvt Ltd, which operates under the brand Kraus Jeans focuses on primarily women, teens and kids casual and denim bottom and top wear.
The business was earlier operating under a partnership firm Oriental Trading Company.
Kraus claims to have its presence in 1,000 large format stores including Lifestyle, Pantaloons, Reliance, Shoppers Stop and Lulu, among others and a network of 8 exclusive brand outlets (EBOs).
“The acquisition fast forwards our journey towards becoming a casual wear brand for the entire family. Kewal Kiran Clothing has a global distribution network and partners that will enable us to grow and expand Kraus as well," said Hemant Jain, joint managing director, Kraus Casual Pvt Ltd.
Kewal Kiran Clothing is a menswear-focused apparel player that operates menswear brands of Killer, Integriti, Lawman Pg3 & easies. It claims to have 488 EBOs and around 80 distributors across India.
Kewal Kiran's stock was trading flat at Rs 684 apiece in mid-day trade on Friday on the Bombay Stock Exchange.
"Today’s acquisition aligns with our vision of expanding and diversifying our denim & casual wear portfolio. It's the maiden acquisition in KKCL's history. We anticipate this transaction to be earnings per share accretive and also generating enduring value for our shareholders in the years ahead,” said Kewalchand Jain, chairman and managing director, Kewal Kiran