Myer has launched a massive takeover bid for a group of clothing retail brands, including Just Jeans and Jay Jays.
The department store giant announced Monday that it is interested in purchasing the portfolio of Apparel Brands, owned by billionaire Solomon Lew’s Premier Investments.
The portfolio of renowned clothing brands, which has more than 700 stores in Australia and New Zealand and also includes Portmans, Jacqui E and Dotti, generated $845 million in revenue in the last financial year.
Lew, who already owns a 31 percent stake in Myer, would get a board seat under the proposed terms of the deal.
The announcement was welcomed by investors on Monday, sending Myer’s share price up over 20 per cent, while Premier’s rose to just under seven per cent.
Myer announced on Monday that it is interested in buying the portfolio of Apparel Brands, owned by billionaire Solomon Lew’s Premier Investments.
The portfolio of clothing brands, which has more than 700 stores in Australia and New Zealand, including Just Jeans (pictured) and Jay Jays, generated $845 million in revenue in the last financial year.
Myer’s new chief executive Olivia Wirth said the acquisition offered the retail giant a “significant opportunity” to boost its business.
“Myer is exploring both organic and inorganic investment opportunities that align with our strategic focus areas to create value for Myer shareholders,” he said.
“It quickly became clear that the idea of a combination of Myer and Apparel Brands offered significant potential synergies and growth prospects, which clearly warranted further examination.”
Myer has expressed interest in acquiring the Apparel Brands portfolio, which includes Just Jeans (pictured)
Lew and Premier said they would be open to the deal but insisted it needed to be considered further.
“The proposed combination has the potential to deliver a step-change in Myer’s scale and market position, generate synergies and drive sustainable profit growth,” its board said in a statement to the ASX.
“Premier shareholders would benefit given Premier’s current stake in Myer and because Premier shareholders would become Myer shareholders.”
Apparel Brands is expected to make $130 million in profits in the next financial year, while Myer’s profits for calendar year 2023 were $88 million, E&P Capital retail analyst Phillip Kimber told Seven News.
Apparel Brands portfolio also includes Portmans, Jacqui E and Dotti (pictured)