RE: Reardon23 Feb 2022 11:40
T4G is correct......below is extract from RNS
Acquisition of remaining 34% minority stake in prettylittlething.com Limited
boohoo (AIM: BOO), a leading online fashion group, is pleased to announce the acquisition of the remaining 34% of shares in prettylittlething.com Limited ("PLT") from its minority shareholders (Umar Kamani and Paul Papworth) for an initial consideration of £269.8 million, potentially rising to £323.8 million. The acquisition is expected to be significantly earnings enhancing on a fully diluted basis with immediate effect.
Transaction rationale and financial impact
By acquiring the remaining 34% stake in PLT today, the Group is taking an important further step towards achieving its vision to lead the fashion e-commerce market globally by accelerating full ownership of a brand that is in high growth with enormous growth potential ahead of it, in a transaction that creates significant value for the Group's shareholders. After this acquisition and with its growing platform of wholly owned, innovative fashion brands, the Group believes it can continue to successfully disrupt the international markets it operates in today, whilst retaining a strong balance sheet in order to take advantage of numerous M&A opportunities that are likely to emerge in the global fashion industry over the coming months.
Since the Group acquired its initial 66% stake in PLT on 3 January 2017, the brand has gone from strength to strength as part of the Group's multi-brand platform; generating £516 million of net sales in the year ending 29 February 2020 vs. £55 million in the year ending 28 February 2017, which represents a CAGR of 111% in this timeframe. In the last financial year, PLT's statutory after tax profit totalled £45.2 million, and its adjusted after tax profit totalled £47.2 million. The Group intends the senior management team at PLT, including Umar Kamani and Paul Papworth, to remain in their current roles and continue focusing on developing PLT into a global brand.
In the Group's most recent financial year ending 29 February 2020, it generated an adjusted after tax profit of £86.0 million, with Adjusted Net Income to Shareholders of £69.9 million; the difference (£16.0 million) being the minority shareholders' 34% interest in the adjusted after tax profits of PLT. Going forwards, this figure will be fully consolidated from the date of completion, and as a result, the group expects the acquisition to be significantly earnings enhancing on a fully diluted basis with immediate effect.
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