MUMBAI: The apparel firm, House of Pearl Fashions as part of its plan to strengthen distribution circle in the overseas markets has acquired 50 percent stake in UK-based marketing company, FX Imports, for an undisclosed amount.
On the occasion, House of Pearl Chairman Deepak Seth stated that there is a great potential to optimise synergies of both companies which would help rapid growth of their business and improve profitability.
He clarified that the acquisition was done through the UK-based subsidiary of the company Poeticgem Ltd. The acquisition would be funded through internal accruals.
However the apparel house has the option to buy the rest of 50 percent stake from promoters of FX Import, in next five years.
Through this acquisition, FX Import could offer wider product range to its existing customers and can leverage House of Pearl's sourcing and warehousing capabilities in the UK.
FX Imports is a marketing company catering to mid market fashion retailers. On the other hand, House of Pearl offers supply chain solutions to retailers. It has its operations spread over 10 countries and tie-ups with over 150 compliant manufacturers.
Recently, the apparel firm tied-up with European marqee brand Lerros to set up retail chain in India. It also plans to acquire retail and distribution firms in the US and Europe.