Frasers Group acquires £75m stake in AO World
The shares were previously owned by Odey Asset Management, which recently saw the departure of founder Crisping Odey following allegations of sexual misconduct revealed by the FT
Frasers Group has announced that it has acquired an 18.9% strategic stake in AO World, a leading online electricals retailer.
The investment cost the group £75m and it is said to be “the culmination of productive talks over the last two years about establishing a strategic partnership”.
Michael Murray, CEO of Frasers Group, said: “Frasers has long admired what John and the AO team have built, and we are delighted to have the opportunity to form a supportive, strategic partnership. AO is a fantastic business with a clear strategy which is leading the market in online-only electricals.
“Through this investment, Frasers will benefit from AO’s valuable know-how in electricals and two-man delivery, helping us to drive growth in our bulk equipment and homeware ranges. In turn, AO will have the opportunity to benefit from Frasers’ expertise and ecosystem.”
John Roberts, founder and CEO of AO, added: “This is great news for AO and a fantastic endorsement for our business. We are delighted to welcome Michael and the wider Frasers team into the AO family and look forward to realising the significant potential that we see for this partnership.
“As we continue to build on our strategy of pivoting to profitable growth, it will be hugely exciting to have a range of compelling strategic opportunities to explore together, and we’re very much looking forward to working with Michael and his team.”
The shares were previously owned by Odey Asset Management, which recently saw the departure of founder Crisping Odey following allegations of sexual misconduct revealed by the FT.
