JD Sports has completed the sale of its distributor, Focus Brands, to Hela Apparel Holdings, a company based in Sri Lanka. The deal, which was worth an undisclosed amount, sees Hela Apparel Holdings take control of the distributor, which is known for handling popular sportswear and streetwear brands such as Ellesse, Nautica, and Yogi. JD Sports originally acquired a minority stake in Focus Brands in 2007, before taking full control in 2011. The sale is part of JD Sports’ strategy to divest non-core assets and focus on its key retail and outdoor business.
For Hela Apparel Holdings, this acquisition represents a significant move towards becoming a vertically integrated service provider in the apparel sector. It will form the foundation of Hela’s new brand licensing division and will continue to operate independently. The acquisition also provides Hela with access to a wider market, as Focus Brands holds exclusive licensing rights for brands such as Ellesse and Nautica in the EU and beyond. Focus Brands currently has showrooms in major European cities, as well as a sourcing office in China and warehouse facilities in the UK and Europe.
A R Rasiah, Chairman of Hela Apparel Holdings, expressed excitement about the acquisition, calling it a “watershed moment” for the organization. He believes that the addition of Focus Brands will create significant synergies with Hela’s existing manufacturing business and enhance the company’s offering to customers through expertise in design, product development, marketing, and distribution.
Ray Evans, the new CEO of Focus Brands, also sees a promising future for the business as it collaborates with Hela. With Focus Brands’ established reputation in the global sports and streetwear industries, Evans aims to build on their success and further develop the licensing division.
Dr. Alastair Alderton, the new Chairman of Focus Brands and CEO of Rianta Capital, a London-based investment advisor representing Hela’s largest shareholder, has plans to rejuvenate and differentiate the brands within the Focus Brands portfolio. He is particularly enthusiastic about brands like Ellesse and Nautica and believes that Rianta Capital’s expertise in consumer apparel businesses will support Hela and Focus Brands on their journey.
This acquisition marks a significant milestone for the Sri Lankan fashion sector as it represents the first entry of a Sri Lankan company into the global apparel market. It reflects the growing ambitions of Hela Apparel Holdings as it expands its presence and capabilities in the industry.
[Useful link 1: Focus Brands website](insert URL here)[Useful link 2: Hela Apparel Holdings website](insert URL here)
