Online retailer Boohoo took out a £12 million loan in order to confirm its acquisition of US-based fashion retailer Nasty Gal.
The acquisition was finalised earlier this week, a month after a US court approved Boohoo’s request for the £16 million takeover.
The deal means Boohoo now has access to Nasty Gal’s intellectual property and customer database, supporting the Manchester-based retailer’s international expansion plans and enhancing its supply chain and distribution options in the US.
The £12 million loan provided to complete the acquisition of Nasty Gal was done through the HSBC bank, and it’s Boohoo’s second retail acquisition in less than three months after it took a £3.3 million stake in PrettyLittleThing in December.
Despite the loan and the costs incurred from two acquisitions, Boohoo expects revenue growth for the 12 months to February 28 to go up by around 50 per cent, up from previous predictions of 46 and 48 per cent.