Boohoo acquiring 66% stake in Pretty Little Thing
December 16, 2016 - United Kingdom
UK online fashion retailer Boohoo plc is acquiring a 66 per cent stake in fast fashion brand Pretty Little Thing (PLT) for a cash consideration of £3.3 million. PLT revenue soared by over 400 per cent year over year to £17.0 million in the fiscal ended February 29, 2016 and has already garnered revenue of £19.0 million in the six months to August 31, 2016.
According to Boohoo, PLT is expected to achieve revenue growth in excess of 150 per cent in fiscal ended February 28, 2017, while broadly achieving EBITDA breakeven.
In the next fiscal, the online fashion retailer plans to review and invest in PLT’s operations, including its warehousing, to ensure the brand is well positioned for the future.
The 34 per cent retained by the existing PLT management will be subject to the management team remaining with PLT over the five-year period to February 28, 2022, while also achieving demanding revenue and EBITDA targets. (AR)