Next, the UK-based clothing retailer, has finalized an agreement to acquire a majority stake in Reiss Group, a high-end fashion chain. The deal is worth £128 million ($162 million) and will see Next increase its ownership in Reiss from 51% to 72%.
The Reiss family will retain a 22% stake in the company, while the management team will hold the remaining 6%. The deal is expected to close in mid-October, subject to regulatory approvals.
Next has been steadily expanding its portfolio in recent years, acquiring other well-known brands such as Cath Kidston, Joules, and Made.com. The acquisition of Reiss is a strategic move for Next, as it will give the company a stronger foothold in the high-end fashion market.
Reiss has been performing well in recent years, with sales increasing by 26% in the 12 months leading up to the end of January. The company's online operations are managed through Next's Total Platform business, which also extends warehousing and distribution services to Reiss. This has helped Reiss to expand its international presence.
The acquisition of Reiss is a positive development for both companies. Next will gain a strong foothold in the high-end fashion market, while Reiss will benefit from Next's expertise in retail and e-commerce. The deal is also expected to create synergies between the two companies, which could lead to further growth in the future.
