Frasers Group has confirmed a cut-price of approximately £52m to purchase Matchesfashion from Apax Partners.
The takeover means heavy losses for the private equity firm, which is said to have invested roughly £600m into the business since buying it from Matchesfashion founders six years ago, according to Sky News.
The deal includes refinancing around £20m of debt owed by the fashion company.
The news comes as Frasers’ “elevation strategy” continues to drive strong trading performance, with the Matchesfashion takeover set to give it a significant boost, Sky News said.
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Although Matchesfashion’s performance has improved under its CEO Nick Beighton, the former Asos chief who joined the company in 2022, it has still been affected by the slowdown in global luxury goods revenues.
The business’s adjusted LBITDA for the year ended 31 January 2023 was a loss of £33.5m.
Luxury retailers saw company valuations and sales soar three years prior during the pandemic.
Beighton will work closely with the Frasers team “to develop a strategy to successfully build on the underlying strength of the business whilst rapidly unlocking synergies with Frasers” the group confirmed.
Frasers CEO Michael Murray said: “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.”
Beighton added: “Being part of Frasers, with their utter commitment to luxury, will give this business access to greater scale, best-in-class retail expertise and the financial stability it needs to more effectively deliver for our brand partners and our customers.”
Fashion giant Next is also thought to have expressed interest in snapping up Matchesfashion.
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