Superdry, the British clothing brand, has announced the sale of its intellectual-property assets in India, Sri Lanka, and Bangladesh to a joint-venture vehicle with Reliance Brands Holding UK. The deal is valued at approximately £40.0 million ($48.3 million).
According to Superdry, the transaction is expected to generate gross cash proceeds of £30.4 million, resulting in a net amount of approximately £28.3 million after fees and taxes.
The intellectual-property assets being sold encompass the Superdry brand and related trademarks in the South Asian countries. The agreement also includes provisions for long-term collaboration, such as the use of new designs and a license for continued manufacturing operations in the region.
In the fiscal year 2023, South Asian intellectual property accounted for 1.8% of Superdry’s total group sales. This segment contributed £11.0 million in revenue and generated a pretax profit of around £2.6 million.
Under the terms of the deal, Superdry will invest £9.6 million in the joint-venture entity, securing a 24% ownership stake, while Reliance Brands will hold the remaining 76%. Reliance Brands has been Superdry’s exclusive franchise partner in India since 2012.
The completion of the transaction is contingent on approval from Superdry’s lenders and shareholders and is expected to occur within 10 business days.