Leading Japanese retail holding company Fast Retailing has decided to buy an 80.1 percent stake in U.S. denim maker J Brand Holdings from Star Avenue Capital and J Brand management for a total consideration of $290 million. The transaction is expected to close by the end of December this year, subject to customary closing and regulatory approvals. Reports suggest that Fast Retailing will meet the transaction cost with its internal resources.

Fast Retailing, which designs, manufactures and sells clothing under six well-known brands, aims to expand its footprint in the affordable luxury apparel category in the U.S. with this acquisition. It will also look to leverage J Brand's expertise in premium denim and strengthen the group's capability to develop denim products. J Brand management will hold the remaining 19.9 percent stake in the company.

Commenting on the development, Tadashi Yanai, Chairman, President and Chief Executive Officer of Fast Retailing said, "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."

"The acquisition will create synergies between the companies, enhancing the positions of both Fast Retailing and J Brand as fashion leaders," he added. The company would have also considered the fact that J Brand is a highly profitable company with its reported net sales of about $124 million for the fiscal year ended December 2011.

Mr. Jeff Rudes, CEO, J Brand, will continue to lead and operate the company following the acquisition.

"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," he said, adding that J Brand's proposed partnership with Fast Retailing has the potential to generate great expansion opportunities in all major markets around the world.