Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
Next has signed terms to acquire FatFace for £115.2m, which will be partly settled in cash and by the issue of the retail group’s shares and management equity rolling over into the new structure.
According to Next, the transaction will not materially impact the group’s underlying profit before tax or EPS in the current year.
Once the transaction is completed within the next few weeks, Next will hold 97% of the equity and FatFace’s management will hold 3% in the business.
Management will also participate in an additional performance-related equity scheme.
As part of the acquisition terms, FatFace will retain its management autonomy and creative independence, as well as its own board of directors and continue to be based in Havant, Hampshire.
FatFace CEO Will Crumbie, who joined the company in 2014 as CFO and took up his current role in 2021, will continue to lead the business.
FatFace has been a label selling on the Next website since 2016 and it is anticipated that it will migrate its online operations onto Next’s ‘Total Platform’ within the next 12 months.
The announcement follows a period of strong trading for FatFace under Crumbie’s leadership. In the year ended 27 May, the brand achieved total sales of £282m and statutory profit before tax of £19.5m.
Digital channels account for 40% of FatFace sales, with the remainder largely coming from their retail stores. It is anticipated that the company will continue to trade and develop its own retail store portfolio.
