Danish giant Bestseller is to buy etailer MandM Direct for £140m, putting an end to the etailer’s plans to float later this month.
MandM Direct, which has been owned by private equity firm TA Associates since 2007, had been looking to list on AIM.
Bestseller, which is known for high street brands Jack & Jones and Vero Moda, already has major interests in etail businesses. It is the largest shareholder in Asos and holds a stake in German etailer Zalando.
Bestseller communication director Mogens Werge said: “We have worked with MandM for several years, and we have come to know the people within the company as passionate and hard-working people who have achieved many positive results lately. We believe that M and M will continue to develop and become a leading company within its business and its markets.”
The two businesses will remain separate but Bestseller said it “hopes to benefit from the knowledge in MandM.
Werge said: We trust that the collaboration will become beneficial for both our companies in the long run, and we look forward to be working with and learning from MandM on areas like mobile sales.”
The sale of MandM Direct is subject to regulatory clearance and is expected to complete within eight weeks.
MandM sells discounted lifestyle, fashion and sports apparel and footwear through websites covering the UK, German, French, Austrian, Dutch and Polish markets. It has ambitions to expand to more overseas regions.
Bestseller has more than 3,000 global stores.
MandM Direct was advised by Canaccord Genuity Limited and Macfarlanes.