Fashion retailer New Look snapped up for GBP780m
Brait will acquire a 90% interest in New Look for GBP780m
South African investment firm Brait has agreed to acquire a majority stake in New Look for GBP780m (US$1.23bn), valuing the UK value fashion retailer at GBP1.9bn.
Brait will buy a 90% interest in the company, which operates more than 800 stores in 21 countries, while the current management will acquire the remaining 10%. For the past 11 years, New Look has been owned by private equity firms Primera and Apax Partners.
CEO Anders Kristiansen, CFO Mike Iddon COO Roger Wightman will remain with the group.
Kristiansen said Brait gives New Look the platform to continue its strategy of growing the brand in the UK, Europe and China.
John Gnodde, CEO of Brait, added: "New Look is an attractive investment opportunity for Brait – it is a market leading brand, with a strong track record of double digit EBITDA growth, solid cashflow conversion, international reach, and the potential to grow rapidly in a number of geographic markets including China."
In February, New Look reported a 28% increase in third-quarter pre-tax profit to GBP35.2m, from GBP27.5m in the same period last year, while revenue edged down 1.6% to GBP399.9m from GBP406.6m
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