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Next acquires interest in Reiss
StockMarketWire.com
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Clothing retailer Next has agreed the terms of a deal to acquire a 25% direct interest in Reiss, with a further option to acquire an additional 26% interest at pre-agreed terms, with the intention that Next's infrastructure will act as a 'launch pad' for Reiss's growth plans.
The 25% indirect interest will be through the acquisition of shares from existing shareholders, in the holding company of the Reiss business and means that upon completion, Next will make an equity investment of £33 million and a debt investment of £10 million, financed from its own cash resources.
Under the terms of the agreement, the company has an option to acquire an additional 26% interest in Reiss at pre-agreed terms which, if exercised, would take its holding to 51%, with the option falling away after July 2022.
Reiss's websites and online operations, both in the UK and overseas, will be contracted to Next through its 'Total Platform', which will also provide warehousing and distribution services for Reiss's retail, franchise, wholesale and concession businesses, all of which will continue to be operated by Reiss.
Reiss will go live on Next's 'Total Platform' in February 2022.
Next confirmed that Reiss will retain its management autonomy and creative independence, with Christos Angelides, who was appointed CEO of Reiss in 2017, remaining in that role.
Reiss will have its own independent board of directors and continue to be headquartered in London.
Angelides said: 'I believe the partnership with Next will be transformational for Reiss's operational effectiveness.
'Next's infrastructure will ensure Reiss is not only more efficient as a business but more effective at serving its customers directly through Reiss stores, at reiss.com and through its worldwide partners.'
At 1:18pm: (LON:NXT) Next PLC share price was 0p at 6670p
Story provided by StockMarketWire.com
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