Isha Ambani's Rs 8.4 lakh crore brand reportedly calls off deal with big salon chain, reason is...

The acquisition deal between Isha Ambani-led Reliance Retail and Natural Salon and Spa has been called off over valuation differences, reported the Economic Times on Wednesday.  This information came to light just days after Reliance's retail arm declared that it would acquire the beauty retail business of Arvind Fashion. Arvind Fashion also includes the Sephora business operated by the Lalbhai family-promoted firm in India. 

Reports suggest that under the deal, Reliance Beauty and Personal Care, a wholly-owned subsidiary of Reliance Retail, will take over 26 stores of the French beauty retail brand from Arvind Fashions Limited.

"As part of the partnership with Sephora, Reliance Beauty & Personal Care take over the current India operations of Sephora's 26 stores across 13 cities from Arvind Fashions Limited, as it sets in motion a plan to expand Sephora's presence in the country," the joint statement read.

Over consideration of sales, the company Arvind Fashion said, "Transaction has been done at an enterprise value of Rs 216 crore towards the sale of the entire equity stake and repayment of loans. The purchase consideration towards the sale of the entire equity stake is Rs 99.02 crore."

Arvind Beauty Brands Retail had a turnover of Rs 336.70 crore in 2022-23 (FY23) and contributed 7.60 per cent of the consolidated revenue of Arvind Fashions. Reliance Retail is valued at Rs 8.4 lakh crore. 

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