Next has acquired FatFace in a takeover deal for £115.2m
In a release, it said the sale of the fashion retailer is expected to take place within the next few weeks.
Next will hold 97% of the equity while FatFace’s management will hold 3% in the business.
Will Crumbie, who joined FatFace as CFO back in 2014 before stepping into the chief executive role in 2021, will continue to lead the business.
Next said that under the deal, management will participate in an additional performance related equity scheme and confirmed that the retailer will retain its management autonomy and creative independence.
FatFace will also hold onto its own board of directors and continue to be based in Havant, Hampshire, UK.
FatFace has been available on next.co.uk since 2016 and it is anticipated that it will migrate its online operations onto its Total Platform within the next twelve months.
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Crumbie said on Linkedin: “I want to thank our FatFace colleagues, who have all done a terrific job of leading the business through the pandemic; building on the brand’s strong heritage, quality product and fantastic customer service to emerge even stronger in recent years. I am looking forward to working with the Next management team in this next phase of growth for the business.”
Back in May, Fatface’s owners hired advisors Rothschild on its strategic options.
The retailer trades from more than 200 shops across the UK and Ireland, as well as several sites in the US and Canada.
Earlier this week, Fatface reported its profits had tripled to £17.3m thanks to its continued investment into expanding its store estate and strengthening third-party partnerships.
FatFace now joins Next’s growing list of retail acquisitions and cement the group as one of the most prolific buyers of rival high street fashion chains.
Next announced in September it had become the largest shareholder in Reiss after it bought out private equity firm Warburg Pincus’ interest for £128m.