Next PLC on Friday said it will acquire FatFace Group Ltd for £115.2 million from a consortium of financial institutions.
The Leicester, England-based clothing, footwear and home products retailer said the acquisition will be paid partly in cash and partly in shares. It said the purchase will not materially impact its pretax profit in 2023.
Fatface is a family-focused clothing retailer which trades from around 180 UK stores.
Sky News first reported that Next was lining up FatFace as its latest takeover deal on Wednesday, noting that Next has purchased Made.com, Cath Kidston and JoJo Maman Bebe since the Covid-19 pandemic. Recently, Next said it has upped its stake in Reiss to 72% from 52%.
The firm said it expects the acquisition to be completed within the next few weeks, after which point it will hold 97% of FatFace shares, while FatFace’s management will retain the remaining 3%.
It added that FatFace will retain both autonomy and creative independence from Next, as well as remaining to be based in Hampshire. It will migrate its online operations onto Next’s platform within a year, the company noted.
Next noted that FatFace Chief Executive Will Crumbie will retain his role, which he has held since 2021.
Next shares fell 1.1% to 6,850.00 pence each on Friday afternoon in London.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
