Ahmedabad-based apparel maker Arvind Limited has exited a five-year-old Indian joint venture with US-based global branded apparel company VF Corporation, selling its 40 percent stake in VF Arvind Brands to VF Corp for Rs. 257 crore ($52 million).
Trilegal advised VF Corp with a team led by Founding Partner Anand Prasad along with Counsel Christopher Krishnamoorthy.
The funds from the stake sale would be used by Arvind to repay debt, according to the media reports.
The joint venture is engaged in marketing products under the brands Lee and Wrangler. The deal is part of the agreement where the foreign partner, VF Corp was to buy out Arvind at the end of five years. Arvind had formed the JV with VF Corp in September 2006 and invested Rs. 5.47 crore in the capital of the venture and was a minority partner in the 60:40 JV. VF Corp had paid $33 million in late 2006 to pick 60 percent in a fresh JV under which the existing operations was transferred, reports VCCircle.
In September, American fashion brand Tommy Hilfiger Group had also bought out a 50 percent stake owned by Murjanis in Arvind Murjani Brands (AMB), a local joint venture with Arvind Group for an undisclosed amount.
Amarchand Mangaldas advised Tommy Hilfiger while Wachtell, Lipton, Rosen & Katz, who have advised Tommy on a host of other transactions acted as International Legal advisors. D.M. Harish & Co. advised Murjani Group while Pryor Cashman acted as International legal advisor for Murjani Group.