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Boohoo Group (BOO)

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Boohoo buys Karen Millen and Coast's online businesses for ?18.2m

06 Aug 19

LONDON (ShareCast) - (Sharecast News) - Online fast fashion retailer Boohoo has bought the online businesses of Karen Millen and its sister brand, Coast, for 18.2m.
The company, which confirmed earlier in the day that it was in talks over the acquisition, said the brands' online businesses is "highly complementary" to its scalable multi-brand platform and the acquisition extends its offer as part of its vision "to lead the fashion e-commerce market globally".

Chief executive officer John Lyttle said: "The acquisition of the online business of two great and renowned British brands in Karen Millen and Coast represents another milestone in the group's growth story as it continues to invest in its scalable multi-brand platform and gain further share in the global fashion e-commerce market."

Jonathan Buxton, partner and head of retail & consumer at Cavendish Corporate Finance, said the deal "makes perfect sense".

"They are both very complementary additions and broaden the appeal of Boohoo's fashion ranges to more mature shoppers. The acquisitions would also give the company some very powerful new distribution channels with combined online sales for Karen Millen and Coast worth about 50m last year.

"The deal illustrates the power of digitally native vertical brands such as Boohoo, which has enjoyed very fast-paced growth. They are able to use their direct, digital dialogue with consumers and close links with suppliers to respond quickly and create new products that precisely match consumer trends."

Deloitte, which was appointed as administrator to Karen Millen, said 62 redundancies have been made following the deal, while more than 1,000 jobs are at risk as 32 stores and 177 concessions are expected to close after they failed to find buyers for the entire business.

At 1450 BST, the shares were up 5.9% at 243.70p.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.


Market Data

Currency UK Pounds
Price 323.60p
Change Today 2.50p
52 Week High 333.70p
52 Week Low 169.50p
Volume 1,449,657
Shares Issued 1,162.81m
Market Cap 3,762.86m


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