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Frasers Group in advanced talks for Matchesfashion buyout
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By Nithya Bose in UK Business News, posted December 18, 2023
Frasers Group is in talks to acquire Matchesfashion, which could cause significant losses for the fashion retailer's private equity backer, Apax Partners.
Sources said Frasers Group was among a few parties engaged in discussions earlier in the week.
Fashion retailer Next is said to have expressed interest in buying Matchesfashion.
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An insider said Frasers would have to pay over £50 million in acquisition costs if the deal is successful.
Despite improved performance under CEO Nick Beighton, Matchesfashion has grappled with the impact of the global luxury goods revenue slowdown.
The former Asos chief, Mr Beighton, joined the company in 2022.
Insiders suggest the proposed deal would be solvent.
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Apax, which invested up to £600 million in Matchesfashion over six years, may face substantial losses.
The acquisition would bolster Frasers Group's "elevation" strategy if successful.
This development follows Frasers Group's withdrawal from a SportScheck acquisition last month.
The pullback is due to financial uncertainties surrounding SportScheck owner Signa Holdings.
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