News Flash

UK's Frasers announces acquisition of luxury shopping platform Matches

20 Dec '23

2 min read

Pic: Matches

Insights

Frasers Group acquires Matches business from MF Intermediate Limited for £52 million.
The deal includes 100 per cent shares of 6 companies and associated debts.
This acquisition aims to boost Frasers' luxury segment and Flannels brand.
Matches CEO Nick Beighton will work with Frasers on a growth strategy, focusing on global sales in 150 countries.

British retailer Frasers Group has announced its acquisition of the Matches business from MF Intermediate Limited, a subsidiary of funds advised by Apax Partners. The acquisition involves the purchase of 100 per cent of the shares of a group of 6 companies, along with the acquisition of senior and junior debt owed by these entities.

This acquisition represents a strategic opportunity for Frasers to enhance its Elevation Strategy and bolster its luxury segment, building on the success and unique positioning of its Flannels brand, Frasers Group said in a press release.

The deal, amounting to approximately £52 million, is set to be financed through Frasers' existing cash reserves and facilities. The gross assets of the acquired companies were valued at around £170 million as of January 31, 2023. However, the Matches business has been incurring losses in recent years, with an adjusted LBITDA of a £33.5 million loss for the year ending on January 31, 2023.

Nick Beighton, chief executive officer of Matches, is set to collaborate closely with the Frasers team. The aim is to develop a robust strategy that leverages the underlying strengths of Matches while realising synergies with Frasers swiftly.

Matches is renowned as an online luxury destination for men and women, offering a curated selection of over 450 established and emerging designers. The business predominantly generates its revenue internationally, delivering to 150 countries outside the UK.

"Matches has always been a leader in online luxury retail and has incredible relationships with its brand partners. This acquisition will strengthen Frasers' luxury offering, further deepening our relationships and accelerating our mission to provide consumers with access to the world's best brands. Whilst the global luxury environment is softer, we are confident that, by leveraging our industry-leading ecosystem, we will unlock synergies and drive profitable growth for Matches," said Michael Murray, chief executive officer of Frasers.

"Since I joined Matches last year, we have made good progress, sharpening our brand and product curation and improving the day-to-day operations of the business. As a result, we have seen a resilient trading performance despite the challenging economic backdrop. Being part of Frasers, with their utter commitment to luxury, will give this business access to greater scale, best-in-class retail expertise and the financial stability it needs to more effectively deliver for our brand partners and our customers," said Nick Beighton, Chief Executive Officer of Matches.

Fibre2Fashion News Desk (DP)

More Fashion News - United Kingdom...