Australia’s Accent Group Limited has struck a deal to acquire the Glue Store retail and wholesale and distribution brands businesses of Next Athleisure Pty Ltd (NAL), for a cash consideration of US$13m.
Glue Store is an Australian youth apparel, shoe, and accessory retailer with a product range that includes domestic and global brands and a portfolio of owned vertical brands. It operates 21 stores and an integrated online site and generates annual sales of about $90m, including $16.6m of online sales.
Accent will acquire all of NAL’s exclusive owned vertical brands, including Nude Lucy, Beyond Her, Lulu & Rose and Article One, which drive more than 25% of total sales. NAL also has distribution rights for a portfolio of global brands, including Superga, Ellesse, Le Coq Sportif, Kappa, K-Way, Sebago, and Napapijri. The sale agreement contemplates the transfer of these distribution rights to Accent, subject in each case, to usual brand owner consent.
The Next Athleisure business will become a new division within Accent, ‘Accent Lifestyle’, with current NAL CEO Darren Todd joining as the segment’s group general manager. Offers of employment will be made to all NAL current team members.
“The NAL acquisition is perfectly aligned to our strategy to grow our leadership position in the lifestyle and youth apparel market in Australia and New Zealand. Glue Store, along with the NAL wholesale and distribution business, provides an established and complimentary platform to accelerate our growing apparel business,” says Daniel Agostinelli, Accent Group CEO.
“We see significant opportunity to leverage Accent’s retail expertise to improve the Glue Store customer experience and store profitability. The youth apparel market is highly fragmented with significant opportunity to grow the store network and capture market share over time.”
Todd adds: “The move to Accent ownership represents a strong strategic alignment for the Next Athleisure business and the right next phase in the Next Athleisure growth plan that the team has been driving over the last two years.”
The acquisition is expected to complete by the end of May and to have no material impact on Accent’s FY21 financial performance.