 "Reliance Retail, Naturals Salon call off acquisition deal over valuation")
Isha Ambani-led Reliance Retail and Naturals Salon & Spa have called off the acquisition deal due to the differences over the valuation of the latter, The Economic Times (ET) reported on Wednesday, citing executives aware of the matter.
Last year, Business Standard reported that Reliance Retail will foray into the salon business by acquiring a 49 per cent stake in Naturals Salon. It was supposed to happen in early 2023 but the deal got delayed.
Notably, this comes just days after Reliance's retail arm announced that it will acquire the beauty retail business of Arvind Fashion, which also includes the Sephora business operated by the Lalbhai family-promoted firm in India.
According to the deal, Reliance Beauty & Personal Care, a wholly-owned subsidiary of Reliance Retail, will take over 26 stores of the French beauty retail brand from Arvind Fashions Limited.
"As part of the partnership with Sephora, Reliance Beauty & Personal Care take over the current India operations of Sephora's 26 stores across 13 cities from Arvind Fashions Limited, as it sets in motion a plan to expand Sephora's presence in the country," the joint statement read.
Over consideration of sales, the company Arvind Fashion said, "Transaction has been done at an enterprise value of Rs 216 crore towards the sale of the entire equity stake and repayment of loans. The purchase consideration towards the sale of the entire equity stake is Rs 99.02 crore."
Arvind Beauty Brands Retail had a turnover of Rs 336.70 crore in 2022-23 (FY23) and contributed 7.60 per cent of the consolidated revenue of Arvind Fashions.
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Sephora, headquartered in Paris, is a part of 80 billion euro LVMH group, a French multinational holding and conglomerate specialising in luxury goods. It had forayed into India in 2012.
(With agency inputs)