Next, the high street fashion giant, has announced that it plans to buy the FatFace business for £115.2 million. Two days after it was rumoured that a deal was in the pipeline, Next has announced that it expects the paperwork to be completed within the coming weeks.
The deal – in exchange for cash and the issue of new Next shares and management equity rolling over into the new structure – will see Next take a 97 per cent stake and FatFace’s management hold on to the remaining 3 per cent. Its management will also benefit from a performance related equity scheme.
Under the deal the business will retain its independence from the Next head office, which is just outside Leicester.
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Will Crumbie, who joined FatFace as its finance director in 2014 and became chief executive in 2021, will continue to lead the business.
In a statement Next said: “The company will retain its own board of directors and continue to be based in Havant, Hampshire, 海角视频.
“FatFace has been a LABEL brand selling on next.co.uk since 2016 and it is anticipated that it will migrate its online operations onto NEXT’s Total Platform within the next 12 months.
“Today’s announcement follows a period of strong trading for FatFace under the leadership of its CEO Will Crumbie.
“In the 52 weeks to 27 May 2023, FatFace achieved total sales of £282m.
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“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 their retail stores.
“It is anticipated that the company will continue to trade and develop its own retail store portfolio.”
It will be the latest purchase for Next in recent years, which has seen it buy out, take stakes in or strike partnerships with businesses including Reiss, Joules, Victoria’s Secrets, Made.com and Cath Kidston.