Frasers and THG tie up..29 May 2025 10:05
Https://news.sky.com/story/jd-sports-backed-applied-nutrition-plots-1bn-london-float-13062717
Further reading on APN's IPO..At one point they were talking about a £1 billion floatation of APN last year, targeting just £100 million in annual sales!!!!!! Unbelievable that APN is 1/17th the size of THG in Global sales, but has a bigger market cap at £325 million today...Are Frasers lining something up is the big question? Doing a bit more digging into APN, I can now see why MA's Frasers Group is buying into THG, Didn't realise that JD Sports is the big backer of APN with a pre IPO holding of 30%. Obviously JD Sports are Sports Direct biggest competitor, so think we might be seeing more involvement of Frasers into THG's business, especially the My Protein business..At the current heavily suppressed share price of THG, surely Frasers could take out THG at a huge % discount to peers like APN, Sports in Science and othe Nutrition / Beauty companies on the market..?
Cannot figure out why Frasers have stopped at 10% ownership...Frasers could easily go for a hostile bid and get a business that's fits in perfectly with their Sports and Retail Empire, THG RemainCo has over £1.7 billion annual sales for £320 million market cap. This is less than 0.2% x sales when minimum peer values are 1.0x and often upto x3.0. Frasers already using Ingenuity within the various business divisions e.g. Sports Direct..
Frasers model is maximum sales with minimal margin, pile it high sell it cheap as we know. With JD Sports trying to constantly muscle in on Frasers Sports Direct business and a big backer of APN, MA has a once in a lifetime chance to aquire 2 "globally leading consumer brands" for less than 0.2x annual sales..Frasers already using Ingenuity so no issues there...something is brewing imho. Adyor!!!
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