Fast Retailing, the parent company of Uniqlo, just bought control of J Brand Jeans.
The retail giant bought an 80.1 percent stake in J Brand for about $290 million, reports Amanda Kaiser at Women's Wear Daily.
From our view, Fast Retailing's new control in J Brand is mutually beneficial.
Fast Retailing, which is a Japanese company, is trying to take over the world and expand internationally. The acquisition of J Brand gives the company serious credibility in the U.S.
In just a few years, J Brand has become the fashion world's favorite denim brand. Kate Middleton, Angelina Jolie and Kristen Stewart have all been photographed wearing the jeans.
But J Brand still has room to grow, and having access to Fast Retailing's deep pockets will allow it to expand more quickly.
"Through the acquisition, Fast Retailing will be able to gain ground in women's apparel, which the company has been focusing on, while at the same time increasing its footprint in the U.S. market, in our view," S&P credit analyst Makiko Yoshimura told WWD.
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