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Frasers Group PLC on Wednesday confirmed reports from Sky News that it will buy Matchesfashion, a luxury clothing retailer, from its private equity owner since 2017, Apax Partners.
The Shirebrook, England-based owner of Sports Direct, Frasers and Flannels retail chains said it will buy Matches for around £52 million. The gross assets of the acquired companies were about £170 million at January 31, when Matches’s financial year ended. For that period, it had reported an adjusted loss before interest, tax, depreciation and amortisation of £33.5 million.
Frasers said: ‘The acquisition is an opportunity to further develop Frasers’ elevation strategy and strengthen Frasers’ luxury offering in which it has established a strong presence and unique positioning through its Flannels brand.’
Frasers Chief Executive Officer Michael Murray said: ‘Matches has always been a leader in online luxury retail and has incredible relationships with its brand partners. This acquisition will strengthen Frasers’ luxury offering, further deepening our relationships and accelerating our mission to provide consumers with access to the world’s best brands. Whilst the global luxury environment is softer, we are confident that, by leveraging our industry-leading ecosystem, we will unlock synergies and drive profitable growth for Matches.’
Frasers shares were 0.5% higher at 934.00 pence each on Wednesday morning in London.
Sky on Monday reported on the sale, citing ‘city sources.’
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