Frasers Group has bought a 19% stake in online electricals retailer AO World.
The retailer snapped the shares up from London-based hedge fund Odey Asset Management, which is currently floundering after its founder Crispin Odey was placed at the centre of misconduct allegations in the Financial Times.
Frasers Group has been on a roll with regards to acquisitions, having also increased its stake in embattled fast fashion retailer Asos for a second time last week up to 9.9%.
In a statement on the stock exchange this morning, AO said the news represented the culmination of two years of discussion around a potential strategic partnership between the two brands.
Michael Murray, chief executive of Frasers Group, said: “Frasers has long admired what John and the AO team have built, and we are delighted to have the opportunity to form a supportive, strategic partnership.
“AO is a fantastic business with a clear strategy, which is leading the market in online-only electricals. Through this investment, Frasers will benefit from AO’s valuable know-how in electricals and two-man delivery, helping us to drive growth in our bulk equipment and homeware ranges.
“In turn, AO will have the opportunity to benefit from Frasers’ expertise and ecosystem.”
John Roberts, founder and chief executive of AO, said: “This is great news for AO and a fantastic endorsement for our business.
“We are delighted to welcome Michael and the wider Frasers team into the AO family and look forward to realising the significant potential that we see for this partnership.
“As we continue to build on our strategy of pivoting to profitable growth, it will be hugely exciting to have a range of compelling strategic opportunities to explore together, and we’re very much looking forward to working with Michael and his team.”
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