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City Chic Collective acquires Arcadia’s Evans for £23m

City Chic Collective has announced it has entered into a binding asset purchase agreement to acquire the Evans retail brand for £23.1m which will be completed on 23 December 2020.

The group said it will also receive the benefit of a transitional services arrangement in connection with the Evans e-commerce business until April 2021.

The transaction reportedly excludes the Evans “bricks and mortar” store network of over 100 locations in the UK.

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The acquisition will be funded from City Chic’s existing cash balance, with the company’s pre acquisition cash balance at A$121m (£68.6m) as of 30 November 2020. The group said its A$40m (£22m) debt facility will remain undrawn.

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Phil Ryan, CEO and MD of City Chic said: “I have followed Evans for over a decade and seen how within Arcadia’s portfolio the brand has evolved from a dominant high street retailer into a more digitally focused business.

“We had a successful partnership with Evans for many years which was a great channel for the City Chic brand in the UK. Evans gives us an excellent foundation in a new geography to grow our collective and is a brand which aligns with our existing product streams.”

He added: “The acquisition meets our strategic objective of growing through global customer acquisition, digitally, and in the $50bn curvy apparel market. In addition to providing a launching pad into a new market,we are confident we can deploy our lean, customer-centric operating model to drive revenue growth and cost efficiencies in the existing business.

“We have a great opportunity ahead of us to develop the third major region for the City Chic Collective.”

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