TIDMBOO
RNS Number : 2369O
boohoo group plc
08 February 2021
FOR IMMEDIATE RELEASE 8 February 2021
The information contained within this announcement is deemed by
the company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014 ("MAR") and the retained
UK law version of MAR pursuant to the Market Abuse (Amendment) (EU
Exit) Regulations 2019 (SI 2019/310) ("UK MAR"). Upon the
publication of this announcement via the Regulatory Information
Service, this inside information is now considered to be in the
public domain. For the purposes of MAR, UK MAR, Article 2 of
Commission Implementing Regulation (EU) 2016/1055 and the UK
version of Commission Implementing Regulation (EU) 2016/1055, the
person responsible for releasing this announcement is Neil Catto,
Chief Financial Officer of boohoo group plc.
boohoo group plc
("boohoo" or "the Group")
Acquisition of British heritage brands Dorothy Perkins, Wallis
and Burton out of administration
boohoo, a leading online fashion retailer, is pleased to
announce that it has agreed to acquire all of the e-commerce and
digital assets and associated intellectual property rights,
including customer data, related business information and inventory
of the Burton, Dorothy Perkins and Wallis brands ("the Brands")
from the joint administrators of Arcadia Group Limited (in
administration) and its relevant subsidiaries ("the Transaction").
boohoo will pay GBP25.2 million in cash, funded from existing cash
resources, on completion.
Strategic Rationale
-- Significant opportunity to grow boohoo's market share across a broader demographic
o The Brands had over two million active customers in 2020
o Strengthens boohoo's position as a leader in the global
fashion e-commerce market with over 15 brands across the Group's
scalable multi-brand platform
-- Strengthening boohoo's menswear proposition
o Burton is an established brand which will enhance boohoo's
menswear portfolio in addition to boohooMAN and the recently
acquired Maine and Mantaray brands
-- Additional own label brands to support the Group's new Debenhams marketplace
o Two routes to market across pureplay websites and the Group's
marketplace
John Lyttle, CEO, commented:
"We are delighted to announce the acquisition of the assets
associated with the online businesses of the three established
brands Burton, Dorothy Perkins and Wallis. Acquiring these
well-known brands in British fashion out of administration ensures
their heritage is sustained, while our investment aims to transform
them into brands that are fit for the current market environment.
We have a successful track record of integrating British heritage
fashion brands onto our proven multi-brand platform, and we are
looking forward to bringing these brands on board."
Mahmud Kamani, Executive Chairman, commented:
"This is a great acquisition for the Group as we extend our
market share across a broader demographic, capitalising on growth
opportunities as more and more customers shop online. We continue
to grow our portfolio of brands and customer base, strengthening
our position as a leader in global fashion e-commerce."
Key Transaction Details
The Transaction is expected to complete on 9 February 2021,
after which the relevant operations for the Dorothy Perkins, Wallis
and Burton brands will continue as the Group integrates them onto
its platform in the first quarter of its financial year ending 28
February 2022.
The Transaction will be financed through the Group's existing
cash resources, which stood at GBP386.9 million on 31 December 2020
prior to the acquisition of Debenhams for GBP55 million announced
on 25 January 2021. The Group will only be acquiring the Brands and
associated intellectual property rights, the Transaction does not
include the HIIT brand and the Brands' retail stores, concessions
or franchises.
Financial Information
The Transaction is expected to contribute modest revenues over
the final few weeks of the Group's current financial year, with
continuity of service being provided to customers through a
Transitional Services Agreement ("TSA"). The integration and TSA
are expected to last for a period of up to three months, and the
Group expects to incur one-off transaction and restructuring costs
in the region of GBP10 million to GBP15 million during this
time.
The Group will provide a further update at its Full Year results
in early May 2021 when it expects to have concluded the integration
of the Brands onto its platform.
In the most recent financial year to 29 August 2020, the Brands
generated unaudited revenues of approximately GBP427.8 million
across all channels and an unaudited EBITDA loss of GBP14.3
million. The ongoing businesses for the Brands generated unaudited
revenues of approximately GBP178.8 million over the same
period.
Enquiries
boohoo group plc
Neil Catto, Chief Financial Officer Tel: +44 (0)161 233
2050
Alistair Davies, Investor Relations Tel: +44 (0)161 233
2050
Clara Melia, Investor Relations Tel: +44 (0)20 3289
5520
Zeus Capital - Nominated adviser and
joint broker
Nick Cowles/Andrew Jones (Corporate Finance) Tel: +44 (0)161 831
1512
John Goold/Benjamin Robertson (Corporate Tel: +44 (0)20 3829
Broking) 5000
Jefferies - Joint broker
Philip Noblet/Max Jones Tel: +44 (0)20 7029
8000
Buchanan - Financial PR adviser boohoo@buchanan.uk.com
Richard Oldworth / Kim Looringh-van Beeck Tel: +44 (0)20 7466
/ Toto Berger / Sophie Wills 5000
About boohoo group plc
"Leading the fashion eCommerce market"
Founded in Manchester in 2006, boohoo is an inclusive and
innovative brand targeting young, value-orientated customers. Since
2006, boohoo has been pushing boundaries to bring its customers
up-to-date and inspirational fashion, 24/7. boohoo has grown
rapidly in the UK and internationally, expanding its offering with
range extensions into menswear, through boohooMAN.
In early 2017 the Group extended its customer offering through
the acquisitions of the vibrant fashion brand PrettyLittleThing,
and free-thinking brand Nasty Gal. In March 2019 the Group acquired
the MissPap brand, in August 2019 the Karen Millen and Coast brands
and in June 2020 the Warehouse and Oasis brands, all complementary
to the Group's scalable, multi-brand platform. United by a shared
customer value proposition, our brands design, source, market and
sell great quality clothes, shoes and accessories at affordable
prices. These investment propositions have helped us grow from a
single brand, into a major multi-brand online retailer, leading the
fashion e-commerce market for 16 to 40-year-olds with a global
presence. As at 31 August 2020, the Group had just over 17 million
active customers across all its brands around the world.
In January 2021, the Group acquired the intellectual property
assets of Debenhams, with the goal of transforming a leading UK
fashion and beauty retailer into an online marketplace through a
new capital light and low risk operating model that is
complementary to the Group's highly successful direct-to-consumer
multi-brand platform. In February 2021, the Group acquired the
intellectual property assets of UK brands Burton, Dorothy Perkins
and Wallis.
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