According to the Thematic Intelligence report on ‘Global M&A Deals in 2022’ published by GlobalData, each of the four M&A deals that took place in the apparel sector in 2022 had a value of over $1bn as compared to the eight in 2021.
Though it might appear M&A is slowing, it’s clear apparel brands continue to leverage it as a method to support their long-term strategies, and, survival.
For many apparel companies, M&A is a good option to allow expansion into new markets. Last week, global fashion infrastructure company PDS Limited (PDS) signed a long-term strategic partnership with Authentic Brands Group (Authentic) which aims to position the Ted Baker brand for continued growth and expansion around the world.
But M&A is also proving to be a lifeline for apparel brands that are increasingly finding themselves under pressure in recent times, with rising costs of living, a global energy crisis and inflation contributing to slowing consumer demand for fashion. British firm Joules was acquired by Next as part of a rescue deal worth GBP34m (US$41.5m), a move supported by industry onlookers who said it would breathe new life into the brand.
As the fashion sector continues to undergo rapid change; on the one hand trying to become more sustainable and slow consumption while on the other continuing to drive sales and contribute to global economies, we watch with a keen interest how M&A deals shape the apparel sector going forward.
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Avery Dennison has entered into a final agreement to purchase Lion Brothers, a prominent company known for designing and producing brand identity systems for clothing.
US footwear company Skechers has signed an agreement with its Scandinavian distributor, Sports Connection, to set up a wholly-owned subsidiary in a bid to boost its growth within Europe.
Authentic Brands Group has entered into a strategic partnership with Vince Holdings to acquire the Vince brand intellectual property, a US$76.5m deal, which gives it a 75% stake in the newly formed subsidiary, ABG Vince.
British retailer Frasers Group sees an opportunity to expand in Europe and believes its sportswear retail brand, Sports Direct, will be the most scalable.
FullBeauty Brands has acquired plus-size fashion retailer Eloquii Inc. from Walmart for an undisclosed sum.
Next Plc is to accelerate the transition of Joules onto its Total Platform (TP) as a result of making “significant” progress in reducing lead times for the third-party e-commerce platform.
Global fashion infrastructure company PDS Limited (PDS) has signed a long-term strategic partnership with Authentic Brands Group (Authentic) to establish Ted Baker Design Group (TDG) as the brand’s global hub for design and innovation.
Chinese fast fashion giant Shein will invest US$150m to enhance the competitiveness of Brazilian textile manufacturers as part of its expansion plans in Latin America.