TIDMNXT
RNS Number : 1148L
Next PLC
01 September 2023
Date: Friday 1 September 2023
Contacts: Alistair Mackinnon-Musson next@rowbellpr.com
Rowbell PR - NEXT Tel: 020 7717 5239
Jonathan Blanchard, COO Tel: 0203 075 2233
Reiss
Jenna Ward jenna.ward@warburgpincus.com
Warburg Pincus - Communications Tel: 0207 306 3805
Photographs: Reiss images can be downloaded via: https://we.tl/t-h4pH5B2E6Q
NEXT images: http://www.nextplc.co.uk/media/image-gallery/campaign-images
Acquisition of Warburg Pincus' Interest in Reiss
NEXT plc ("NEXT") announces that it has agreed (1) the terms of
a transaction whereby NEXT and the Reiss family will acquire the
entirety of Warburg Pincus' ("WP") 34% interest in the Reiss Group
("Reiss") for total consideration of GBP128m on a fully diluted
basis. The transaction is subject to customary conditions including
regulatory approvals.
1. NEXT entered into binding agreements to effect the
transaction on 21 August 2023.
Upon completion of this transaction, which is subject to the
satisfaction of the conditions and expected to take place in
mid-October 2023, NEXT's holding in the Reiss business will
increase from 51% to 72%. The Reiss family's holding will increase
to 22% and the Reiss management team will hold 6% equity in the
business. Following completion of this transaction, Reiss's results
will be consolidated into the NEXT plc accounts.
The transaction will not materially impact the NEXT Group's
underlying profit before tax or EPS in the current year. However,
there will be a non-recurring, non-cash, exceptional gain in the
NEXT Group accounts reflecting the increased value of its
investment in Reiss and its consolidation into the NEXT Group
accounts in accordance with IFRS3 (Business Combinations). For
clarity, this is an accounting gain and does not contribute to the
underlying profitability of the Group. Further details of this
transaction will be set out in our Half Year Results announcement
on 21 September.
Today's announcement follows a period of strong continued growth
for Reiss under the leadership of CEO Christos Angelides. In the
year to 28 January 2023, Reiss achieved total sales of GBP324.6m,
an increase of 26.4% on the prior year. Profit before tax in the
same period was GBP51.6m (2) , an increase of 50.5% on the prior
year.
2. Reiss Holdings Limited consolidated accounts for the year
ended 28 January 2023.
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. Reiss will continue to retain its own Board of Directors,
Reiss management will retain autonomy and creative independence and
the business will continue to be headquartered in London.
Reiss's websites and online operations, both in the UK and
overseas, remain contracted to NEXT through NEXT's Total Platform
which went live in February 2022 and which has served as a launch
pad for Reiss's growth both in the UK, and overseas.
Simon Wolfson, NEXT Chief Executive said: "Reiss has performed
exceptionally well since we first invested in March 2021. This
success has been driven by the strength of its brand, first class
management and the benefits of Total Platform; we look forward to
continuing to develop the business with Christos and the Reiss
team. Warburg Pincus has been an excellent partner throughout the
term of our investment and we have enjoyed working with them during
the last two years."
Adarsh Sarma, Managing Director and Rianne Schipper, Principal,
Warburg Pincus said: "Warburg Pincus is proud to have supported
Reiss through its growth journey since 2016. We would like to thank
Christos, Jonathan and the management team for their unrelenting
hard work and commitment - they have done an outstanding job,
consistently demonstrating category-leading performance. We have
also been delighted by our partnership with NEXT and the way in
which NEXT's Total Platform has accelerated growth and enhanced the
performance of the business."
Christos Angelides, Reiss Chief Executive said: "We are
appreciative of the excellent partnership with Warburg Pincus over
the past seven years - their expertise has been instrumental to our
sustained development and they have been a strong and trusted
partner. We look forward to continuing to focus on creating
authentic and timeless collections for our customers and over the
next few months we will be launching a number of new initiatives
that will both expand the breadth and choice of our collections
worldwide. "
Raymond James served as financial advisor to Reiss. Kirkland
& Ellis served as legal advisor to Warburg Pincus. Slaughter
and May served as legal advisor to NEXT. nmelaw served as legal
advisor to the Reiss family. Fried, Frank, Harris, Shriver &
Jacobson served as legal advisor to the Reiss management team.
As NEXT is currently in a Closed Period its employees will not
be available for comment. Please direct all questions to Alistair
Mackinnon-Musson at Rowbell PR.
ENDS
About NEXT
NEXT plc (LON: NXT) is a FTSE 100 company based in Leicester and
is one of the UK's leading online clothing retailers. NEXT has
around 460 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 is a modern fashion house creating attainable luxury
collections for men, women and children, since 1971.
From its birthplace in London to now being present in over 18
countries and 266 points of sale, Reiss is synonymous with being
timeless, authentic and with a focus on quality. A truly global
brand, Reiss offers a complete wardrobe.
About Warburg Pincus
Warburg Pincus LLC is a leading global growth investor. The firm
has more than $83 billion in assets under management. The firm's
active portfolio of more than 250 companies is highly diversified
by stage, sector, and geography. Warburg Pincus is an experienced
partner to management teams seeking to build durable companies with
sustainable value. Founded in 1966, Warburg Pincus has raised 21
private equity and 2 real estate funds, which have invested more
than $112 billion in over 1,000 companies in more than 40
countries. The firm is headquartered in New York with offices in
Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg,
Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and
Singapore. For more information, please visit
www.warburgpincus.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQGIGDCSDGDGXB
(END) Dow Jones Newswires
September 01, 2023 04:30 ET (08:30 GMT)
Next (LSE:NXT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Next (LSE:NXT)
Historical Stock Chart
From Jul 2023 to Jul 2024
