Mar 10, 2021
Next takes stake in fashion brand Reiss
High street fashion retailer Next has acquired a 25 per cent stake in Reiss and could take control of the upmarket UK fashion chain by mid-next year. It will also lend the fashion retailer £10m. The transaction implies an enterprise value for Reiss of roughly £200m. Next also has an option to acquire an additional 26 per cent at a slightly higher price at any time before July 2022, taking its stake to 51 per cent and allowing it to consolidate Reiss's sales and profits. Adam Cochrane at Citigroup has valued it at about £350m. Paul Rossington at HSBC said it allows Next "To move into the high-margin ecommerce solutions service market" with a fully integrated proposition that includes collecting and returning items in stores. Lord Simon Wolfson, chief executive of Next, described Reiss as "An outstanding brand with enormous potential" and said he was "Excited to see what can be achieved through the combination of Reiss's exceptional product, marketing and brand building skills with Next's infrastructure". Christos Angelides, chief executive of Reiss since 2017, previously worked at Next for 28 years and was a board member for 14 of those.
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