Frasers Group has snapped up luxury fashion retailer Matches in a £52m deal as it looks to strengthen its luxury offering and elevate its portfolio.
The fashion giant confirmed today it has acquired Matches from private equity firm Apax Partners for a total of £52m, which will be settled in cash.
Frasers said the acquisition is an opportunity to “further develop Frasers’ elevation strategy”, as well as strengthen its luxury offering in which it already has a “strong presence and unique proposition” through Flannels.
Mike Ashley’s retail empire also confirmed that Matches boss Nick Beighton will continue to “work closely” with the Frasers team following the acquisition.
Frasers’ top team and Beighton will work together as they look to develop a strategy and “build on the underlying strength of the business whilst rapidly unlocking synergies with Frasers”.
Frasers chief executive Michael Murray said: “Matches has always been a leader in online luxury retail and has incredible relationships with its brand partners.
”This acquisition will strengthen Frasers’ luxury offering, further deepening our relationships and accelerating our mission to provide consumers with access to the world’s best brands.
“Whilst the global luxury environment is softer, we are confident that, by leveraging our industry-leading ecosystem, we will unlock synergies and drive profitable growth for Matches.”
Beighton said: “Since I joined Matches last year, we have made good progress, sharpening our brand and product curation and improving the day-to-day operations of the business.
“As a result, we have seen a resilient trading performance despite the challenging economic backdrop. Being part of Frasers, with their utter commitment to luxury, will give this business access to greater scale, best-in-class retail expertise and the financial stability it needs to more effectively deliver for our brand partners and our customers.”
The announcement comes after it was reported earlier this week by Sky News that Ashley was in negotiations about a deal that would see Frasers take control of Matches “within days”.
Beighton told Retail Week last month that the luxury retailer was prioritisting a return to profitability and growing “customer love” amid its turnaround strategy, after posting an adjusted EBIT loss of £33.7m for the full year to January 31, 2023.