House of Pearl Fashions Ltd has bought a 50% stake in the UK-based marketing company FX Imports Ltd, as it seeks to strengthen its overseas distribution and move into high fashion markets.

The deal has been carried out through House of Pearl's UK subsidiary Poeticgem Ltd, but no financial details have been released.

FX Imports supplies mid-market fashion retailers and generated revenues of GBP10.0m (US$20.3m) in its last fiscal year.

It is likely to benefit by leveraging House of Pearl's sourcing, designing and warehousing capabilities in UK, and offering a wider product range to its existing customers.

House of Pearl, which has the option to buy the remaining stake in FX Import in the next five years, expects the acquisition to add US$50.7m to its annual revenues over the next three years.

"Poeticgem is well established in the value segment in the UK and with this acquisition has opened up opportunities to enter the higher end of the market that offers better margins," said House of Pearl chairman Mr Deepak Seth.

"There is great potential to optimise the synergies of both companies which would help rapid growth of their business and improve profitability."

House of Pearl has operations spread over 10 countries and tie-ups with over 150 manufacturers. The company also owns two apparel brands and warehouses in the US.

It recently tied-up with European marquee brand Lerros to set up a retail chain in India, and is on the lookout to acquire retail and distribution firms in the US and Europe.