Mumbai, July 5: Aditya Birla Fashion and Retail is acquiring the India business of Forever 21 from its franchisee Diana Retail Pvt Ltd.

The consideration for the acquisition is $26 million (Rs 175 crore).

The AV Birla Group company today said it has executed a business transfer agreement with Diana Retail and DLF Brands (the promoter of Diana Retail).

The move is part of Aditya Birla Fashion's plan to be the country's largest integrated branded fashion player. The deal will enable it to create a strong foothold in western wear for women. This segment is growing at over 20 per cent.

Forever 21 is among the fastest growing fashion retailers in the world with over 700 stores worldwide. The global clothing brand has 12 stores across India, besides e-commerce channels.

After the deal, the new undertaking will be part of Madura Fashion & Lifestyle. Aditya Birla Fashion will acquire the exclusive online and offline rights to the brand in India.

Aditya Birla Fashion and Retail was formed after a consolidation of the branded apparel businesses of Aditya Birla group comprising Aditya Birla Nuvo's Madura Fashion division and its subsidiaries Pantaloons Fashion and Retail and Madura Fashion & Lifestyle in May 2015.

After the consolidation, Pantaloons Fashion and Retail was renamed Aditya Birla Fashion and Retail.

In 2015-16, Aditya Birla Fashion's revenue stood at Rs 1,442 crore. Diana Retail's revenue was Rs 262 crore.

Aditya Birla Fashion's shares today ended with gains of nearly 1.29 per cent at Rs 145.45 on the BSE. It has over 7,000 points of sale in the country, which is spread across 375 cities and towns, besides over 2,100 exclusive brand outlets. It also has an online fashion portal - Trendin.com.

Last month, Pantaloons, a division of Aditya Birla Fashion, added international brand Izabel London to its rich portfolio of exclusive brands. Pantaloons is among the leading fashion retailers in India. Izabel London is a contemporary western wear for women.