British online fashion retailer Asos has acquired the Topshop, Topman, Miss Selfridge and HIIT brands for $364 million. As per reports, the acquisition makes Asos the number one fashion destination for young customers worldwide. Its brand equity is strongest in the UK and it has also established a strong presence in both the US and German. The newly acquired brands will join Venture Brands portfolio alongside others, including Collusion, AsYou and Reclaimed Vintage.

Asos will retain its established brand and customer positioning by applying industry leading design talent and online retail experience. Retailer will also invest in customer engagement and brand positioning in line with its existing mode. The British fashion company anticipates incremental sales in fiscal year 2022 to be broadly flat as it focuses on driving growth on Asos platform and through select strategic retail partnerships. The acquisition is expected to be margin accretive, with strong operating leverage given the relatively low incremental costs of operation once integrated onto the Asos platform. Asos expects the transaction to deliver double-digit return on capital (post tax) in the first full year.