Frasers Group, which owns a raft of brands such as Sports Direct and Flannels, as well as a small number of shopping outlets, has launched a takeover offer of luxury brand Hugo Boss.
The group already owns a 26% stake and is Hugo Boss’ largest stakeholder, but it’s looking to acquire the remaining 74%.
Frasers’ offer totalled €38 per share, with the total value reaching €1.98bn (£1,73bn). Shares in Hugo Boss were worth €36.44 at the close of trading on Wednesday (June 10).
There’s been speculation that Frasers could seek a takeover of the brand after building up its stake since its first investment in 2020.
Frasers said in an announcement to the city: “Frasers has a strong track record in making strategic investments in the ordinary course of its business to develop relationships and partnerships. Hugo Boss is a key brand partner for Frasers and one of the top five brands across the Frasers group.
“Frasers is a long-term investor in Hugo Boss and remains supportive of both Stephan Sturm, the chair of the supervisory board, and Daniel Grieder, chief executive officer, in pursuit of their sustainable growth strategy whilst continuing to build brand equity.”
It added that the increasing investment “will create value” for Frasers’ shareholders, and the board’s view is that the acquisition is in the “best interests” of Frasers and its shareholders.
Frasers chief executive Michael Murray did not take part in the board’s discussion or decision to make the offer, as he is a member of the supervisory board at Hugo Boss.
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