Next PLC NEXT PLC - Acquisition of an Interest in Reiss (7997R)
March 10 2021 - 5:00AM
UK Regulatory
TIDMNXT
RNS Number : 7997R
Next PLC
10 March 2021
Date: Wednesday 10 March 2021
Contacts: Alistair Mackinnon-Musson Email: next@rowbellpr.com
Rowbell PR - NEXT PLC Tel: 020 7717 5239
Jonathan Blanchard, Chief Operating Tel: 0203 075 2233
Officer Tel: : 07471 992 907
Reiss
Julie Foster
Warburg Pincus - Communications
Photographs: Reiss images can be downloaded via: https://we.tl/t-gGJ5JB1QJk
NEXT images: http://www.nextplc.co.uk/media/image-gallery/campaign-images
NEXT PLC
Acquisition of an Interest in Reiss
NEXT plc ("NEXT") announces that it has agreed the terms of a
deal to acquire a 25% indirect interest in Reiss Limited ("Reiss")
through the acquisition of shares from existing shareholders, in
the holding company of the Reiss business.
Upon completion of this deal, which is subject to regulatory
clearance, NEXT will make an equity investment of GBP33m and a debt
investment of GBP10m, financed from NEXT's own cash resources.
Under the terms of the agreement, NEXT has an option to acquire
an additional 26% interest at pre-agreed terms which, if exercised,
would take NEXT's holding to 51%. The option falls away after July
2022.
Reiss was founded in 1971 by David Reiss, originally as a
menswear brand. It is now an affordable luxury apparel brand,
producing and selling high-quality, classic and modern men's and
women's clothing and accessories. In May 2016, US private equity
firm Warburg Pincus acquired a majority stake in Reiss, with the
Reiss family retaining a minority holding.
Christos Angelides was appointed CEO of Reiss in 2017 and will
remain in that role. Christos previously worked for NEXT for 28
years, serving 14 years on the NEXT plc Board as Group Product
Director.
An important aspect of the NEXT investment is that Reiss will
retain its management autonomy and creative independence. Reiss
will have its own independent Board of Directors and continue to be
headquartered in London.
Reiss's websites and Online operations, both in the UK and
overseas, will be contracted to NEXT through NEXT's Total Platform.
Total Platform will also provide warehousing and distribution
services for Reiss's retail, franchise, wholesale and concession
businesses, all of which will continue to be operated by Reiss. It
is anticipated Reiss will go live on NEXT's Total Platform in
February 2022.
The intention is that NEXT's infrastructure - its online
systems, warehousing, distribution assets and sourcing base - can
serve as a launch pad for Reiss's growth plans, both in the UK, and
overseas.
In the year to 1 February 2020, Reiss achieved turnover of
GBP227.4m through all its sales channels, an increase of 22% on the
prior year. The company currently operates in 14 countries from 79
stores, 104 concessions and via wholesale and franchises. In its
first year, after accounting for integration and acquisition costs,
the investment is expected to have minimal impact on NEXT group
profits but we expect a positive contribution thereafter.
Simon Wolfson, NEXT Chief Executive said: "Reiss is an
outstanding brand with enormous potential and a first class
management team. We are excited to see what can be achieved through
the combination of Reiss's exceptional product, marketing and brand
building skills with NEXT's Total Platform infrastructure."
Christos Angelides, Reiss Chief Executive said: "I believe the
partnership with NEXT will be transformational for Reiss's
operational effectiveness. NEXT's infrastructure will ensure Reiss
is not only more efficient as a business but more effective at
serving its customers directly through Reiss stores, at reiss.com
and through its worldwide partners. Whilst we will continue to
focus on creating authentic and timeless collections, today's
announcement provides a great opportunity for Reiss to realise the
Brand's global potential as a Modern Fashion House."
ENDS
About NEXT
NEXT plc (LON: NXT) is a FTSE 100 company based in Leicester and
is the UK's number one online clothing retailer. NEXT has around
500 stores in the UK and Eire and an online presence in over 70
countries selling the NEXT brand and over 700 other fashion, home
and beauty brands, including Reiss.
About Reiss
Reiss, the modern fashion house, has designed and curated
authentic luxury fashion, tailored for modern living, since 1971.
Modern style should be enduring. Our Creative Team combines
authentic design and creativity with an uncompromised approach to
excellence and high levels of service. The Reiss complete wardrobe
collections are thoughtfully-made, with versatile pieces to elevate
the everyday. Wear now, keep forever, we try to empower the
customer to dress to their style and to their purpose. The brand
operates via multiple channels including: owned stores, on-line,
wholesale, licensing, franchise and concession with more than 257
points of sale in 14 countries across the UK, US, EMEA and APAC.
Please visit reiss.com
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END
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