Boohoo acquires remaining stake in Pretty Little Thing
The Boohoo online fashion group has acquired the remaining 34% stake in Pretty Little Thing that it does not already own for £269.8 million.
However, this could rise by a further £54 million if Boohoo’s share price averages 491 pence per share over a six month period between completion and March 2024.
The acquisition from Umar Kamani and Paul Papworth is part of Boohoo’s plans to take advantage of the numerous M&A opportunities it predicts will emerge in the global fashion industry in the coming months.
Boohoo acquired its initial 66% stake in Pretty Little Thing in January 2017. In the year to February 2020, the brand generated £516 million in net sales compared to £55 million in the year ending February 2017.
John Lyttle, Boohoo chief executive, said: “We are delighted to be acquiring the remaining 34% stake in Pretty Little Thing. It has been a brand that has delivered strong growth as part of the Boohoo group’s platform, and has a great future ahead of it in the UK and overseas.”
Both Papworth and Pretty Little Thing founder Kamani will remain in their respective roles of chief operating officer and chief executive of the brand following the acquisition.
Kamani said: “This deal represents another milestone in our journey at Pretty Little Thing. Since being a disruptive start-up in 2012 to a global fashion brand that generates over half a billion pounds in sales today, I am incredibly proud of what my team and I have achieved in such a short period of time.”
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