• Warburg Pincus will take “majority” stake, which values business at £230m
  • Reiss plans to expand in the UK and overseas, particularly North America, Asia and Australia
  • Reiss owner David Reiss to retain “significant investment” and remain chairman and chief executive

Reiss is planning significant expansion as its owner has agreed to sell a majority stake to private equity group Warburg Pincus.

Reiss, valued at £230m, will be sold to an affiliate of Warburg Pincus. It will use its funds to expand further at home and abroad, particularly in North America, Asia and Australia.

Founder David Reiss will remain both chairman and chief executive and retain “significant investment” in the business.

David Reiss said: “I am confident that working together [with Warburg Pincus] we will be able to build Reiss into a truly global fashion brand.”

Reiss operates in 15 countries, selling via stores such as Bloomingdale’s in the US, de Bijenkorf in the Netherlands and David Jones in Australia.

The fashion retailer’s online presence is strongest in the US and also operates in Europe, Australia, Canada and the Republic of Ireland.

Online development is a key part of international expansion, as underlined by recent partnerships with Asos, Zalando and Very Exclusive.

Reiss has had a good year, generating sales of £146m in the year to January 2016, up 14% from the previous year, and £24.4m EBITDA.

Warburg Pincus managing director Paul Best said: “As long-term growth investors, we look forward to partnering with David and his team and supporting the global expansion of Reiss.

“The business has built an enviable position in its core UK market, with a broad and loyal customer base, and we believe there is a significant opportunity to build on this success and accelerate development internationally.”