Fast Retailing Announces Definitive Agreement to Acquire Majority Interest in J Brand Holdings, LLC

  Fast Retailing Announces Definitive Agreement to Acquire Majority Interest
  in J Brand Holdings, LLC

Business Wire

TOKYO -- November 30, 2012

FAST RETAILING CO., LTD. (hereinafter “FAST RETAILING”) today announces that
it has entered into a definitive agreement (hereinafter the “Transaction”) to
acquire majority control of J Brand Holdings, LLC (hereinafter “J Brand”) from
Star Avenue Capital and J Brand management. J Brand is a leading contemporary
fashion brand based in Los Angeles, California. As part of the Transaction,
FAST RETAILING will acquire an 80.1% stake in J Brand, and the balance will be
owned by the management of J Brand. The Transaction is expected to close by
the end of December 2012, subject to customary closing and regulatory
approvals.

J Brand is a leading contemporary fashion company with significant experience
in women’s and men’s apparel, particularly in the denim category. Founded in
2005 by Mr. Jeff Rudes, Chief Executive Officer, the company has developed a
variety of unique denim fabrications. Today, J Brand is well-recognized for
its minimal yet sophisticated product design, beautiful silhouette and perfect
fit. Star Avenue Capital acquired a controlling interest in the company in
2010, and J Brand has built a solid operational platform to become one of the
leading brands in the category, with its products sold in over 2,000 specialty
boutiques and luxury retailers in more than 20 countries worldwide. J Brand is
a highly profitable company with its reported net sales of approximately $124
million (approximately 10 billion Japanese yen) for the fiscal year ended
December 2011.

The purpose of the planned acquisition of J Brand is to extend the FAST
RETAILING Group’s brand portfolio among the affordable luxury apparel
category, and to leverage J Brand’s know-how in the area of premium denim and
strengthen the group’s capability to develop denim products. At the same time,
acquiring a Los Angeles-based apparel brand will enable FAST RETAILING to
reinforce its presence further in the crucial U.S. market.

“Our planned acquisition will extend the FAST RETAILING Group’s brand
portfolio among the affordable luxury apparel category and strengthen our
group’s capability in the denim category,” said Tadashi Yanai, Chairman,
President and Chief Executive Officer of FAST RETAILING. “In addition, the
acquisition will create synergies between the companies, enhancing the
positions of both FAST RETAILING and J Brand as fashion leaders.”

“J Brand’s proposed partnership with FAST RETAILING has the potential to
generate great expansion opportunities in all major markets around the world,”
commented J Brand Chief Executive Officer Jeff Rudes. “We are very proud of
the platform we have built together with Star Avenue Capital and its partners,
Irving Place Capital and CAA, over the last several years, and we look forward
to our next phase of growth.”

The existing J Brand management team, led by Mr. Rudes, will continue to lead
and operate the company as one of FAST RETAILING’s key businesses for the
future.

Funds required for the Transaction will be financed by internal FAST RETAILING
Group funds and loans, if necessary. The financial impact of the Transaction
to FAST RETAILING’s consolidated financials ending August 2013 will be
announced immediately after confirmation of details.

About Fast Retailing

Fast Retailing Co. (FR), a leading global Japanese retail holding company that
designs, manufactures and sells clothing under six main brands: Helmut Lang,
Comptoir des Cotonniers, g.u., Princesse tam.tam, Theory and UNIQLO. With
global sales of 928 billion yen for the 2012 fiscal year ending August 31,
2012, FR is the world’s fourth largest apparel retail company and UNIQLO is
Japan’s leading specialty retailer. With a corporate statement committed to
changing clothes, changing conventional wisdom and change the world, FR is
dedicated to creating great clothing with new and unique value to enrich the
lives of people everywhere. For more information about UNIQLO and other FR
group companies, please visitwww.fastretailing.com

About J Brand

J Brand set out to create a sophisticated jean from a fashion point of view to
make a woman look and feel beautiful in her jeans. Known for its remarkable
fit, J Brand has achieved a winning combination of style, comfort, and
sexiness. In the fall of 2008, the brand introduced its men’s line, reflecting
modern classics with a masculine sensibility. Beginning with Spring 2012, J
Brand introduced a Ready-to-Wear collection designed with luxurious
contrasting fabrics while continuing the simplistic attention to detail and
sensibility of the brand. A California-based company, J Brand is featured in
specialty stores and luxury retailers in more than 20 countries worldwide. For
more information, please visit www.jbrandjeans.com

About Star Avenue Capital

Star Avenue Capital is a growth equity firm focused on making equity
investments in branded consumer product and retail companies. Leveraging the
resources, relationships and expertise of its joint venture partners, Irving
Place Captial and Creative Artists Agency, Star Avenue Capital was created to
be a differentiated private equity group, providing growth captial and
strategic counsel to growth companies in the branded consumer products and
branded retail industries. To learn more, please visit
www.staravenuecapital.com.

Contact:

Fast Retailing Co., Ltd.
Aldo Liguori, +81 (0)3 6885 0960
Global PR
Corporate PR Department
 
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