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Frasers Group has confirmed it has acquired the Matches business from MF Intermediate Limited in a deal estimated to be around £52m.
The company has purchased 100% of the shares of a group of six companies, as well as the acquisition of the senior and junior debt owed by those companies.
The deal will be settled in cash at completion from Frasers’ existing cash reserves and facilities.
The gross assets of the acquired companies were approximately £170 million at 31 January 2023, the last accounting reference date for which information is available.
The Matches business has been loss making in recent years, and adjusted EBITDA for the year ended 31 January 2023 fell to a £33.5m loss.
Nick Beighton, CEO of Matches, said he will work closely with the Frasers team to develop a strategy to “build on the underlying strength of the business”.
Michael Murray, Frasers CEO, said: “Matches has always been a leader in online luxury retail and has incredible relationships with its brand partners. This acquisition will strengthen Frasers’ luxury offering, further deepening our relationships and accelerating our mission to provide consumers with access to the world’s best brands.
“Whilst the global luxury environment is softer, we are confident that, by leveraging our industry-leading ecosystem, we will unlock synergies and drive profitable growth for Matches.”
Beighton added: “Since I joined Matches last year, we have made good progress, sharpening our brand and product curation and improving the day-to-day operations of the business. As a result, we have seen a resilient trading performance despite the challenging economic backdrop.
“Being part of Frasers, with their utter commitment to luxury, will give this business access to greater scale, best-in-class retail expertise and the financial stability it needs to more effectively deliver for our brand partners and our customers.”
