REG - Frasers Group PLC - Acquisition

FrasersAnnouncement

20/12/2023 10:45

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RNS Number : 4775X  Frasers Group PLC  20 December 2023

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

 

 Frasers Group plc

 Robert Palmer, Company Secretary                 T. 0344 245 9200

 LEI: 213800JEGHHEAXIJDX34                        E. company.secretary@frasers.group

 Chris Wootton, Chief Financial Officer           T. 0344 245 9200

                                                  E. financial@frasers.group

 Ronnie Laffar, Head of PR & Communications       T. 07585 886189

                                                  E. fgpr@frasers.group

 Andrew Kasoulis, Investor Relations Director     T. 07826 532191

                                                  E. investor.relations@frasers.group

 Rosie Oddy, Brunswick Group, PR Advisors         T. 07734 861279

                                                  E. frasersgroup@brunswickgroup.com

 Barclays Bank PLC, acting through

 its Investment Bank

 Nicola Tennent                                   T. 020 7623 2323

 Stuart Muress

 Numis                                            T. 020 7260 1000

 Luke Bordewich

 Stuart Ord

 Ollie Steele

 Liberum                                          T. 020 3100 2000

 John Fishley

 Edward Thomas

 Kane Collings

 Nikhil Varghese

 

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