Last checked at 13 Oct 2023 15:11
Date: | 13th October, 2023 | |
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Contacts: | Alistair Mackinnon-Musson Rowbell PR - NEXT PLC | next@rowbellpr.com Tel: 020 7717 5239 |
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| Lucy Legh / Joanna Clark HeadLand PR - FatFace | fatface@headlandconsultancy.com Tel: 020 3805 4822 |
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Photographs: | FatFace images: https://wetransfer.com/downloads/8129c123c5487cee07c21aaf33ae9d8920231009130336/013359
NEXT images: http://www.nextplc.co.uk/media/image-gallery/campaign-images | |
NEXT PLC
Acquisition of FatFace
NEXT plc ("NEXT") announces that it has signed terms to acquire FatFace for a total equity value of £115.2m ("Consideration") from a consortium of Financial Institutions (the "Sellers").
The Consideration will be settled partly in cash and partly by the issue of new NEXT shares and management equity rolling over into the new structure. The transaction will not materially impact the NEXT Group's underlying profit before tax or EPS in the current year.
Upon completion of this transaction, which is expected to take place within the next few weeks, NEXT will hold 97% of the equity and FatFace's management will hold 3% in the business. Management will also participate in an additional performance related equity scheme. FatFace will retain its management autonomy and creative independence. The company will retain its own Board of Directors and continue to be based in Havant, Hampshire, UK. FatFace has been a LABEL brand selling on next.co.uk since 2016 and it is anticipated that it will migrate its online operations onto NEXT's Total Platform within the next twelve months.
Today's announcement follows a period of strong trading for FatFace under the leadership of its CEO Will Crumbie. In the 52 weeks to 27 May 2023, FatFace achieved total sales of £282m. Statutory profit before tax in the same period was £19.5m. Digital channels account for 40% of FatFace sales, with the remainder largely coming from their retail stores. It is anticipated that the company will continue to trade and develop its own retail store portfolio.
Will Crumbie, who joined FatFace as CFO in 2014 and became CEO in 2021, will continue to lead the business.
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About NEXT
NEXT plc (LON: NXT) is a FTSE 100 company based in Leicester and is one of the UK's leading online clothing retailers. NEXT has around 460 stores in the UK and Ireland and an online presence in over 70 countries selling the NEXT brand and over 700 other fashion, home and beauty brands, including FatFace.
About FatFace
FatFace is a British, family, lifestyle clothing brand that is Made for Life. With a unique heritage, FatFace creates product ranges across womens, mens, kids, footwear and accessories for the whole family to live life in. FatFace products are designed with purpose and built to last. Considered Style. Trusted Quality. Responsibly sourced.
FatFace is a multichannel retailer with a thriving UK and international digital business as well as over 180 stores in the UK and Ireland, over 25 stores in the US and Canada and a highly engaged social community. FatFace has 1.8m active customers. FatFace is a brand with sustainability at its core, with a clear strategy around three key pillars - product, planet, and community. The brand was recently awarded B Corp? status, a testament to its achievements against these pillars. www.fatface.com
FatFace and the Sellers were advised by Rothschild & Co as financial adviser and Addleshaw Goddard as legal adviser. NEXT was advised by EY and Eversheds Sutherland.