In This Article:
Joint Venture with Reliance Brands Holding UK Limited
Mothercare plc (“Mothercare” or the “Company”), the specialist global brand for parents and young children, is pleased to announce a new joint venture with Reliance Brands Holding UK Limited (“RBL UK”) (a wholly-owned subsidiary of Reliance Brands Limited) (“Reliance Brands”). The new joint venture entity owns the Mothercare brand and related intellectual property assets relating to regions of India, Nepal, Sri Lanka, Bhutan and Bangladesh, and will be the franchisor of the Mothercare brand in the aforesaid regions. RBL UK will hold a 51% stake in the joint venture company and Mothercare Global Brand Limited (a subsidiary of Mothercare) will hold the remaining 49% stake.
The Board of Mothercare believes that the new joint venture:
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underlines the inherent value of the Mothercare brand; and
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creates a new and invigorated partnership in the South Asian region with Reliance Brands, one of the world’s largest, leading and respected business groups which will bring symbiotic and synergistic benefits.
Clive Whiley, Chairman of Mothercare, commented:
“Today’s agreement strengthen our operations in South Asia through an even closer working relationship with Reliance, our existing valued franchise partner, and underline the intrinsic value of the Mothercare brand strength, coterminously supporting a material reduction in our bank facilities and leverage.
We have renewed confidence in the opportunity that this reinvigorated joint-venture now presents. We look forward to working even more closely with Reliance Brands as our joint venture partner and not just franchisee in the region, moving forward together.
Taking today’s development together with the inherent strength of the business’s brand, we believe Mothercare can approach 2025 and beyond with a renewed and growing sense of confidence at the opportunities ahead.”
New South Asian Joint Venture Arrangement
Mothercare and Reliance Brands Holding UK Limited (a wholly-owned subsidiary of Reliance Brands Limited) (RBLUK) have today entered into definitive agreements to create a new joint venture in the United Kingdom, which shall own Mothercare’s intellectual property assets in India, Nepal, Sri Lanka, Bhutan and Bangladesh. This joint venture arrangement replaces the previous franchise arrangement between Mothercare and Reliance Brands Limited, covering India alone, which was a 30 year agreement entered into 6 years ago.
Reliance Brands Limited is a subsidiary of Reliance Industries Ltd, a Fortune 500 company and the largest private sector corporation in India.