Superdry agrees to sell South Asian IP for £40m

Superdry has announced that it has agreed a deal to sell its South Asian IP to Reliance Brands Holding UK (RBUK) for £40m.

RBUK will now majority own the Superdry brand and related trademarks in India, Sri Lanka, and Bangladesh.

The deal is a joint venture between the two companies with RBUK 76% of the venture and Superdy retaining 24%.

As a result of the £40m sale it is estimated that Superdry will receive a gross cash proceeds of approximately £30.4m.

Superdry will invest £9.6m in the joint venture entity, which is offset against the £40m received by the company.

RBUK is held by Reliance Retail Ventures Limited (RRVL) through its subsidiary Reliance Brands Limited (RBL), Superdry’s exclusive franchise partner in India since 2012.

Following the transaction RBL will continue to oversee brand operations in South Asia.

Superdry believes that the partnership will provide the best opportunities for the future growth of the Superdry brand in South Asia.

It also believes that this will allow the company to focus on growing its brand and increasing sales in its more established territories.