Fast Retailing buys 80 percent of J Brand

Japanese retail giant Fast Retailing, owner of Uniqlo apparel chain, has acquired an 80.1 percent stake in the coveted denim brand J Brand Holdings LLC. The deal is expected to close by the end of the year. “Our planned acquisition will extend the

Fast Retailing Group’s brand portfolio among the affordable luxury apparel category and strengthen our group’s capability in the denim category,” said Tadashi Yanai, Chairman, President and Chief Executive Officer of FAST RETAILING. “In addition, the acquisition will create synergies between the companies, enhancing the positions of both Fast Retailing and J Brand as fashion leaders.”

“J Brand’s proposed partnership with Fast Retailing has the potential to generate great expansion opportunities in all major markets around the world,” commented J Brand Chief Executive Officer Jeff Rudes. “We are very proud of the platform we have built together with Star Avenue Capital and its partners, Irving Place Capital and CAA, over the last several years, and we look forward to our next phase of growth.”

The existing J Brand management team, led by Mr. Rudes, will continue to lead and operate the company as one of Fast Retailing’s core businesses. As announced by the Japanese company, funds required for the transaction will be financed by their internal “group funds and loans, if necessary.” With regards to the financial impact of this operation, “the financial impact of the Transaction to Fast Retailing’s consolidated financials ending August 2013 will be announced immediately after confirmation of details,” reported ‘The Herald’.

In 2010, private equity firm Star Avenue Capital acquired a 60 percent stake in J Brand for 85 million dollars, keeping Jeff Rudes, co-founder and chief executive officer of J Brand, in charge of the company.

Rudes and J Brand management will continue to run the company, according to a statement released by Fast Retailing, which said the deal extends Fast Retailing’s “brand portfolio among the affordable luxury apparel category” by the time this operation “will enable Fast Retailing to reinforce its presence further in the crucial U.S. market.”