Next buys rival FatFace for £115m
Next has agreed terms to buy rival retailer FatFace for a total equity value of £115.2m, adding its circa 180 UK stores and 25 shops in the US and Canada to its real estate portfolio.
Next, which has some 460 UK and Ireland shops in its existing estate, has agreed to buy the brand from a consortium of financial institutions. The sum will be paid partly in cash and by the issue of new Next shares and management equity rolling over into the new structure.
The deal is expected to close within the next few weeks. When it completes, Next will hold 97% of the equity and FatFace’s management will hold 3% in the business.
Next has agreed terms to buy rival retailer FatFace for a total equity value of £115.2m, adding its circa 180 UK stores and 25 shops in the US and Canada to its real estate portfolio.
Next, which has some 460 UK and Ireland shops in its existing estate, has agreed to buy the brand from a consortium of financial institutions. The sum will be paid partly in cash and by the issue of new Next shares and management equity rolling over into the new structure.
The deal is expected to close within the next few weeks. When it completes, Next will hold 97% of the equity and FatFace’s management will hold 3% in the business.
FatFace will retain its management autonomy and creative independence. It will keep its own board of directors and continue to be based in Havant, Hampshire.
The brand, which has been sold on Next’s website since 2016, will migrate its online operations onto Next’s platform within the next 12 months.
FatFace achieved total sales of £282m in the 52 weeks to 27 May 2023, while statutory profit before tax in the same period was £19.5m. Digital channels account for 40% of FatFace sales, with the remainder largely coming from retail stores.
Next said the company would continue to trade and develop its own retail store portfolio.
Will Crumbie, who joined FatFace as chief financial officer in 2014 and became chief executive in 2021, will continue to lead the business.
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