Frasers Group Acquires Matches for £52M to Boost Luxury Offering
Frasers Group, led by Michael Murray, has seen a 4.4% revenue increase to £2.77 million in the first half of its fiscal year. The group, which recently sold its Missguided brand, is now focusing on bolstering its luxury segment with the acquisition of Matches, a deal valued at £52 million. Despite Matches' history of financial losses and multiple CEO changes, Frasers Group is confident in the acquisition due to the resilient trading performance of Nick Beighton, the current CEO of Matches. Beighton, who previously led Match Group, has navigated the company through challenging economic conditions. Matches, despite its losses, boasts significant assets totaling £170 million and generates most of its revenue internationally, serving 150 countries outside the U.K.
The acquisition is part of Frasers Group's strategy to leverage its ecosystem and drive profitable growth. Michael Murray, CEO of Frasers Group, is optimistic that this move will unlock synergies. Meanwhile, in the luxury e-commerce space, Farfetch was recently acquired by Coupang, following weeks of speculation about delisting from the New York Stock Exchange due to a softening luxury clothing market.
Frasers Group's acquisition of Matches, despite the latter's recent financial struggles, signals a commitment to strengthening its luxury offering. With Beighton's resilient leadership and Matches' international reach, Frasers Group is poised to make a significant impact in the luxury retail sector.
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