Mothercare partners with Ebebek to expand brand presence in Turkiye

In Turkey, Ebebek has around 280 stores and an on line business producing revenues of around £400m (~$536 million), together with 3 stores recently opened in the UK. The new license agreement will give Ebebek the exclusive right to use the Mothercare brand in Turkey on products either designed and sourced by Ebebek or Mothercare for a period of 10 years. It also gives Mothercare the right to re-brand certain Ebebek own brand products with the Mothercare brand and sell outside of the territories where Ebebek trades.

Clive Whiley, Chairman of Mothercare, commented: "Today's agreement following on from our joint venture with Reliance Industries announced last year is further evidence of the strength, inherent value and global appeal of the Mothercare brand and the value it can add, with businesses that are already market leaders in their territory. We look forward to working together with Ebebek to establish Mothercare as an important part of their business.

We are in discussions with several other parties to further restore critical mass alongside delivering our other core objectives. The underlying business continues to prove its resilience, and the strength of the brand is evident from the interest it generates and the ongoing discussions with other potential strategic partners."

New License Agreement

Mothercare and Ebebek have entered in to a 10 year agreement, giving Ebebek the exclusive right, solely within Turkey, to use the Mothercare brand on products they design or source, subject to our prior approval and in accordance with our guidelines and standards. Ebebek may also purchase Mothercare branded products from us solely for sale within Turkey. On the sale of any Mothercare branded product Ebebek will pay a percentage of the sale as a royalty. The agreement also allows Mothercare to purchase products Ebebek has sourced for itself, either under its own brands or Mothercare, for sale by our franchise partners outside of the territories where Ebebek trades and to re-brand these products with the Mothercare brand if relevant.

The shares of Ebebek, which went public in 2023, are traded on Borsa Istanbul's Stars Market under the code EBEBK.

This new agreement will not only provide additional revenue to our Company but will also potentially enable us to obtain synergies and the resultant benefits, from combining the purchasing power of our two businesses.

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ALCHEMPro News Desk (RM)