Mumbai, Sept. 19: Raymond Ltd will acquire 75.1 per cent equity stake in Chennai-based ColorPlus Fashions Private Ltd with the balance holding to be bought after 42 months based on the latter’s performance.

The business of ColorPlus has been initially valued at Rs 58 crore, Raymond chairman and managing director Gautam Singhania said here today after the company board approved the memorandum of understanding (MoU) inked with shareholders of ColorPlus. The MoU was subject to customary due diligence and negotiation of definitive agreements, he added.

“The acquisition of ColorPlus will complement our existing portfolio of brands and is a step towards further consolidating our position as a leading apparel player. We expect substantial synergies between the existing marketing and distribution network of raymond and product portfolio of ColorPlus,” Singhania said.

Rajendra Mudaliar and Kailash M. Bhatia, director shareholders of ColorPlus, would continue to be a part of the management of the company, which was a south-based premium menswear branded apparels entity. Raymond has a distribution network of about 2,300 outlets in 400 cities and towns and its existing portfolio includes brands like Park Avenue, Parx and Manzoni.”