L Catterton to invest $125m in India's FLF - update
L Catterton Asia will purchase an approximately 10% stake in India-listed integrated fashion retailer Future Lifestyle Fashion (FLF) for INR8.5 billion ($125 million) through newly issued shares and secondary purchases.
According to a regulatory filing, the fresh issue will consist of 3.8 million shares at a price of INR445.50 each, a premium to the May 18 closing price of INR434, representing a 1.9% stake in the company. L Catterton purchased an additional 15.6 million shares on the open market for INR434 each.
A part of Indian conglomerate Future Group, FLF operates 103 Central & Brand Factory retail stores along with 229 exclusive brand outlets, for a total of over five million square feet of retail space across India. It owns the national distribution rights for global clothing brands including John Miller, Umbro, and UMM, and also produces a number of its own clothing lines.
For the year ended March 2018, the company reported retail sales revenue of INR48 billion, up from INR40 billion the year before, with FLF's owned and licensed brands accounting for 38%. Over the same period, net profit grew from INR1 billion to INR1.3 billion.
L Catterton was formed in 2016 from the merger of L Capital, the private equity and real estate arm of luxury goods giant LVMH, with consumer-focused GP Catterton. The firm has about $15 billion of assets under management across six fund strategies globally and is currently raising its third Asia fund, which launched last year with a target of $1.25 billion.
Previous investments by L Catterton Asia include the purchase of a controlling stake in Indian restaurant operator Impresario Entertainment & Hospitality last year. The firm also led a consortium last year that bought a stake in South Korean sunglasses and eyewear brand Gentle Monster.
"We were attracted to FLFL due to its ability to create superior shopping experiences and a curated set of exceptional brands for the Indian consumer," said Ravi Thakran, chairman and managing partner of L Catterton Asia, in a statement. "The underpenetrated retail sector in India offers significant opportunity and we look forward to working alongside [Future Group founder and CEO Kishore] Biyani and the outstanding management team throughout this next phase of the Company's growth."
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