Sri Lanka’s Hela buys major UK-based apparel brand licensing house
Daily FT: In a landmark move for the Sri Lankan apparel industry, Hela Apparel Holdings Plc has announced the acquisition of a major UK-based apparel brand licensing house.
The company that currently trades under the name Focus Brands, is a market leader in the design, sourcing, distribution and promotion of sports fashion and lifestyle apparel brands. At present it holds exclusive licensing agreements for design and distribution of several major apparel brands, including Ellesse and Nautica, in the UK, the European Union and other global markets.
Hela has acquired a 100% shareholding in the company from JD Sports Fashion Plc one of the world’s leading global omnichannel retailers of sports, fashion, and outdoor brands with 3,400 stores across 38 countries.
Through the acquisition, Hela has taken the first major step in its strategy to become a fully vertically integrated service provider for the apparel sector. Focus Brands will form the basis for the organisation’s new brand licensing division that will initially operate independent of existing apparel manufacturing business. The transaction also marks the first time that a Sri Lankan apparel manufacturer acquired a brand management company in one of its key markets, moving Hela significantly closer to its end customer and expanding its range of services to brand marketing and distribution.
Hela Apparel Holdings Plc Chairman A. R. Rasiah said: “The addition of Focus Brands to the Hela Group is a watershed moment for us as an organization. We see immense potential to build significant synergies with our existing manufacturing business, supported by the addition of Focus Brands’ well-experienced team of over 200 that have a proven track record of successfully growing major apparel brands. We intend to leverage their renowned design, product development, marketing, and distribution capabilities to further elevate Hela’s offering to its existing customers across the industry.”
The acquisition will expand Hela’s global presence through Focus Brands’ six state-of-the-art product showrooms located in London, Manchester, Berlin, Munich, Düsseldorf, and Amsterdam, alongside a sourcing office in China. The company’s service offering to its customers will be further strengthened through a network of warehousing facilities in the UK and Europe, placing Hela in a distinctively advantageous position within the industry.
Hela Apparel Holdings Plc Co-Chairman and Non-Executive Director and Rianta Capital CEO, a London-based investment advisory firm with a strong footprint in the global fashion industry and representatives of Hela’s largest shareholder Dr Alastair Alderton added his thoughts on the acquisition: “The global apparel industry as we know, has changed drastically. The demands of consumers are evolving at a rapid pace and geopolitical volatility is increasing that calls for much closer collaboration and harnessing of synergies between apparel brands and trusted manufacturers. Through this acquisition, Hela will gain closer access to its end-consumer and be able to provide truly comprehensive solutions to the brands it serves. We look forward to supporting Hela on this journey with Rianta Capital’s market-leading expertise in forward-looking consumer apparel businesses.”
Hela Apparel Holdings Plc provides sustainability-focused apparel supply chain solutions. The company works closely with global brands, from design to delivery in the intimate, active and kids’ wear product categories. With 10 manufacturing facilities across four countries and a workforce of over 17,000 across the globe, Hela leads the industry in ethical and sustainable working environments.
OSL take:
The growth and expansion of Sri Lanka’s Hela Apparels is indicative of the overall strength and growth of the country’s economy. Sri Lanka’s manufacturing and export sectors have shown a steady growth through the years, even during the challenging economic conditions faced by the country. The apparel industry has shown growth through the years and has been resilient despite the many challenges faced due to the economic crisis faced by the country. The government of Sri Lanka has also introduced many incentives to attract foreign businesses/investors to the country’s export sector, especially the apparel export industry. The many trade agreements as well as trade concessions enjoyed by Sri Lanka with other countries have also helped boost Sri Lanka’s apparel exports sector. Given the growing business potential in Sri Lanka’s manufacturing and export sectors including the apparel exports sector, foreign businesses/investors could confidently explore the expanding opportunities in these sectors. Foreign businesses could also look at forming partnerships or joint ventures with local businesses/investors engaged in the manufacturing and export sectors with the aim of expansion.
| Article Code : | VBS/AT/20240209/Z_1 |