Next Plc has strengthened its control of UK fashion house Reiss, buying a 34% holding from US investment firm Warburg Pincus for £128 million ($162 million).
(Bloomberg) — Next Plc has strengthened its control of UK fashion house Reiss, buying a 34% holding from US investment firm Warburg Pincus for £128 million ($162 million).
The fashion and homewares retailer will lift to 72% from 51% previously while the founding Reiss family’s holding will rise to 22% of the business. The deal is expected to take place in October. Reiss management will hold the remainder.
The move underlines Next’s growth in owning retail brands after the retailer snapped up struggling fashion label Joules, homeware brand Cath Kidston and baby goods retailer JoJo Maman Bebe in the past 18 months.
While the UK’s cost-of-living crisis is spelling collapse for many retailers, Next is on the ascent. The company raised its profit guidance last month as warmer weather and salary increases encouraged consumers to buy apparel.
Reiss was founded by David Reiss in 1971 and is known for its high-end, muted designs in workwear and occasionwear. Warburg Pincus acquired a majority stake in in 2016 with the founder retaining a minority interest. Next first bought a stake of 25% in Reiss in 2021.
The transaction is subject to regulatory approval and Reiss Chief Executive Officer Christos Angelides will remain in his role.
Next shares were little changed at 9.45am in London.
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