RIL acquires British toy-maker Hamleys for Rs 620 crore

Mukesh Ambani-led Reliance Industries Thursday announced it will acquire iconic British toy-maker Hamleys for 67.96 million pounds (around Rs 620 crore) in an all-cash deal.

Hamleys, a 259-year-old toy-maker, has struggled to generateprofits in recent times. It reported a profit after tax of 2.44 million poundsin 2018 after suffering a loss of 11.24 million pounds in 2017.

   

It is currently owned by Chinese fashion conglomerate C BannerInternational, which had acquired it for 100 million pounds in 2015. C Banneralso owns the Chinese units of marquee consumer retail brands such as SteveMadden and Sundance.

“Reliance Brands Ltd, a subsidiary of RelianceIndustries, and C Banner International Holdings, a Hong Kong-listed company,today signed a definitive agreement for Reliance Brands to acquire 100 per centshares of Hamleys Global Holdings Ltd, the owner of Hamleys brand, from CBanner International,” the company said in a statement.

Reliance Brands would acquire 100 per cent equity shares of”Hamleys Global Holdings Limited (HGHL) for a cash consideration of GBP67.96 million”, RIL said in a BSE filing.

Hamleys started with a single-store shop, Noah’s Ark, in1760. It now has 167 stores across 18 countries. Besides the UK, it has storesin China, Germany, Russia, India, South Africa and West Asia.

Reliance Retail, Ambani’s flagship retailer, already has apan-India franchise agreement with Hamleys to merchandise its famous toys.

This acquisition will catapult Reliance Brands to be adominant player in the global toy retail industry, the company said in astatement.

In India, Reliance has the master franchise for Hamleys andpresently operates 88 stores across 29 cities.

Reliance Brands President and CEO Darshan Mehta said theworldwide acquisition of the iconic Hamleys brand and business places Relianceon the front-line of global retail.

Personally, it is a dream come true, he added.

“Over the last few years, we have built a very significantand profitable business in toy retailing under the Hamleys brand in India. This250-year-old English toy retailer pioneered the concept of experientialretailing, decades before the concept of creating unique experiences in brickand mortar retailing became the new global norm,” Mehta said.

Hamleys was delisted from the London Stock Exchange (LSE) in2003 when it was taken over by Icelandic investment firm Baugur Group for USD68.8 million. In 2012, it was sold for USD 78.4 million to Groupe Ludendo ofFrance.?

Hamleys opened it flagship Regent Street London store in1881. This flagship store is set over seven floors covering 54,000 sq ft, withover 50,000 lines of toys on sale. It is considered one of London’s prominenttourist attractions, receiving over 5 million visitors each year.

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