E-retailer Zalando to buy About You in deal valuing rival at $1.2 bln (updated)

ABOUT YOU Holding SE

11/12/2024 07:25

(recasts headline and lede, adds shares, About You
shareholders, combined entity guidance)
       Dec 11 (Reuters) - German online retailer Zalando
 ZALG.DE  said on Wednesday it would acquire fashion group About
You  YOUG.DE  in a deal valuing its rival at 1.1 billion euros
($1.2 billion), as part of plans to form a pan-European
e-commerce platform.
    Zalando shares fell 8% by 0710 GMT in early Frankfurt trade
following the news. 
        Zalando said that About You's major shareholders Otto
GmbH and an investment company controlled by Heartland A/S, as
well as the retailer's board members, have resolved to accept
the offer of 6.50 euros per share.
        The combined business of Zalando and About You aims to
have an adjusted earnings before interest and taxes (EBIT)
margin of between 10% and 13%, Zalando said in a statement.
        
  
($1 = 0.9502 euros)

 (Reporting by Andrey Sychev, editing by Rachel More)
 ((andrey.sychev@thomsonreuters.com;))