Frasers Group Regulatory News (FRAS)

Date: 20 December 2023

FRASERS GROUP PLC

FRASERS ACQUIRES MATCHES, STRENGTHENING ITS LUXURY OFFER

Frasers Group plc ("Frasers") is pleased to announce the acquisition of the MATCHES business from MF Intermediate Limited, a subsidiary of funds advised by Apax Partners, by way of the purchase of 100% of the shares of a group of 6 companies and the acquisition of the senior and junior debt owed by those companies.

MATCHES is a leading destination in online luxury for men and women, which offers a modern edit of more than 450 established and next-generation designers and generates the majority of its revenue internationally, with the business delivering to 150 countries outside the UK.

The consideration totals approximately £52 million and will be settled in cash at completion from Frasers' existing cash reserves and facilities.

The gross assets of the acquired companies were approximately £170 million at 31 January 2023, the last accounting reference date for which information is available. The MATCHES business has been loss making in recent years. The Adjusted LBITDA for the year ended 31 January 2023 was a loss of £33.5 million.

The acquisition is an opportunity to further develop Frasers' Elevation Strategy and strengthen Frasers' luxury offering in which it has established a strong presence and unique positioning through its FLANNELS brand.

Nick Beighton, Chief Executive Officer of MATCHES, 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.

Commenting on the acquisition, Michael Murray, Chief Executive Officer of Frasers, said:

"MATCHES has always been a leader in online luxury retail and has incredible relationships with its brand partners. 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."

Nick Beighton, Chief Executive Officer of MATCHES, added:

"Since I joined MATCHES last year, we have made good progress, sharpening our brand and product curation and improving the day-to-day operations of the business. As a result, we have seen a resilient trading performance despite the challenging economic backdrop. 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."

Ends