Shares in Mothercare PLC (LSE:MTC) rose 4% on Monday after the company signed a new 10-year licensing agreement with Turkish retailer Ebebek, expanding its presence in a key international market.
Under the deal, Ebebek will have exclusive rights to sell Mothercare-branded products in Turkey, either designed and sourced in-house or by Mothercare itself.
The agreement includes royalties paid to Mothercare on each sale and gives the UK group the right to rebrand and sell certain Ebebek products through its franchise network in other regions.
Ebebek, which operates around 280 stores and an online platform in Turkey, generating roughly £400 million in annual revenue, is a leading player in the mother-and-baby retail segment. It has also recently launched three stores in the UK.
Mothercare said the agreement strengthens its brand’s global footprint and follows last year’s joint venture with India’s Reliance Industries.
The company added that it remains in discussions with other potential partners as it looks to rebuild scale and drive additional licensing income.
The stock rose 0.11p to 2.86p.