Twitter LinkedIn
    Friday, January 27
    Login
    0 Shopping Cart
    Twitter LinkedIn
    Private Equity InsiderPrivate Equity Insider
    • About Us
    • Digital Events
    • Our Network
      • Reach
      • Sponsors
      • Members
    Private Equity InsiderPrivate Equity Insider
    Home»Mergers & Acquisitions»Britain’s ASOS scoops up prized Arcadia brands for 265 million pounds
    Mergers & Acquisitions

    Britain’s ASOS scoops up prized Arcadia brands for 265 million pounds

    February 1, 20212 Mins Read
    LinkedIn Facebook Twitter Email WhatsApp
    Share
    LinkedIn Facebook Twitter Email WhatsApp

    LONDON (Reuters) – ASOS has bought the Topshop, Topman, Miss Selfridge and HIIT brands from the administrators of Philip Green’s collapsed Arcadia group for 265 million pounds ($364 million), the British online fashion retailer said on Monday.

    The deal for Arcadia’s prized brands, which will be fully funded from cash reserves, does not include its 70 stores, putting thousands of jobs at risk and underlining the transfer of power towards online retailers.

    Green’s Arcadia empire fell into administration in November owing creditors hundreds of millions of pounds and threatening more than 13,000 jobs.

    Its collapse was the biggest corporate failure of the COVID-19 pandemic so far.

    “The acquisition of these iconic British brands is a hugely exciting moment for ASOS and our customers and will help accelerate our multi-brand platform strategy,” said ASOS Chief Executive Nick Beighton.

    “We have been central to driving their recent growth online and, under our ownership, we will develop them further.”

    While the internet has been reshaping the British retail landscape and the clothing sector for more than a decade, multiple lockdowns to stem the spread of COVID-19 have accelerated the move to home shopping.

    On Friday, ASOS’s rival Boohoo said it had entered into exclusive talks with Arcadia’s administrators, Deloitte, over the purchase of the Dorothy Perkins, Wallis and Burton brands.

    If a deal is struck there it would complete the break-up of Green’s empire.

    Established in 2000, ASOS has grown quickly. Its shares closed Friday at 4,735 pence, valuing the business at 4.47 billion pounds.

    ASOS has also bought 30 million pounds of stock, while about 300 Arcadia employees across design, buying and retail partnerships will transfer to the group.

    It said incremental core earnings from the deal in its 2020-21 year would be offset by initial ramp-up costs.

    There would also be additional one-off restructuring and transaction costs of about 20 million pounds.

    ($1 = 0.7279 pounds)

     

     

    Source: Reuters

    Image Source

    Related

    Can't stop reading? This and all news articles are property of their creators, many are not owned or provided by Private Equity Insider. As an event organizer and community platform, we curate content from reliable sources for your suggested reading, and advise you to read the full articles from the referenced authors and sources.

    2021 Acquisition Acquisitions deals deals and transactions investment Investments Mergers and acquisitions PE Insider Private Equity
    Share. LinkedIn Facebook Twitter Email WhatsApp

    Related Posts

    Euroclear moves into $9.8 trillion private asset market with Goji buy

    December 21, 2022

    CAI raises over $1B for inaugural fund and co-investment programme

    November 18, 2022

    KKR looking to sell Canadian gas producer Westbrick for $1.13B

    November 18, 2022

    Carlyle targeting $1.6B for second renewables fund

    November 18, 2022

    Comments are closed.

    Other Articles

    Handshake secures another USD80 million

    May 14, 2021

    Bill Ackman’s Pershing Square hedge fund reports record 2020 returns

    February 19, 2021

    PE and VC entrepreneurs publish blueprint for Diversity and Inclusion in the investment industry

    February 15, 2021

    Versapay Acquires Leading Cash Application Fintech Company DadeSystems

    April 18, 2022

    Private Equity Insider LLC
    1212 Avenue of the Americas
    New York City 10036
    USA

    [email protected]

    Twitter LinkedIn
    © 2023 Private Equity Insider LLC. All rights reserved.
    • About
    • Terms of Use
    • Cookie Policy
    • Privacy Policy
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.

    View Cart Checkout Continue Shopping

    Sign In or Register

    Welcome Back!

    Login to your account below.


    Lost password?