JD Sports offloads Ellesse and Nautica distributor Focus Brands to Hela Apparel Holdings

Sri Lankan apparel manufacturer Hela Apparel Holdings has completed the acquisition of Focus International Limited (Focus Brands) from JD Sports Fashion for an undisclosed sum.

UK sports and streetwear distributor Focus Brands counts Ellesse, Nautica, Yogi, Peter Werth, Patrick, Farah Footwear and Avirex amongst its brand licensing roster.

Hela Apparel’s acquisition of Focus Brands, a brand management company in one of its key markets, is "a first in the Sri Lankan apparel industry".

The landmark move signifies a new era for Focus Brands, which holds exclusive licensing agreements for Ellesse and Nautica not just in the UK, but in the EU and other global markets.

Through the acquisition, Hela has taken the first major step in its strategy to become a fully vertically integrated service provider for the apparel sector.

Focus Brands will form the basis for the organisation’s new brand licensing division, which will initially operate independently of the existing apparel manufacturing business.

This transaction "moves Hela significantly closer to its end customer" and expands its range of services to brand marketing and distribution.

Newly appointed CEO of Focus Brands, Ray Evans, said: "This acquisition is an exciting opportunity that will see the teams at Hela and Focus Brands coming together in collaboration, to create an exciting future for the business.

"Focus has already built up an excellent reputation for itself across the global sports and streetwear industries and, alongside the team at Hela, we intend to build on that established success and amplify what the licensing house has already created."

The acquisition will expand Hela’s global presence through Focus Brands’ six product showrooms in London, Manchester, Berlin, Munich, Düsseldorf and Amsterdam, alongside a sourcing office in China.

The company’s service offering to its customers will be further strengthened through a network of warehousing facilities in the UK and Europe, "placing Hela in a distinctively advantageous position within the industry".

Dr Alastair Alderton, the new Chairman of Focus Brands and CEO of London-based boutique investment advisor Rianta Capital, said: "Through this acquisition we plan to rejuvenate, differentiate, and grow the brands within the Focus portfolio, whilst maintaining their own unique DNA.

"We are excited about the prospects for brands such as Ellesse and Nautica, and we look forward to supporting both Hela and Focus Brands on this journey with Rianta Capital’s deep expertise in forward looking consumer apparel businesses."