Frasers Group, a prominent U.K. sports-fashion retailer, announced its acquisition of online luxury retailer Matches for a sum of £52 million ($66.2 million). This strategic move not only aligns with the company’s elevation strategy but also reinforces its presence in the luxury market.
Strengthening Position in the Luxury Market
Frasers Group will finance the deal using its existing cash reserves and facilities. The acquisition involves purchasing Matches from MF Intermediate, a subsidiary of funds advised by Apax Partners. Matches primarily generates its revenue from international markets, serving customers in 150 countries outside of the U.K.
Despite experiencing losses in recent years, Matches has seen significant growth potential. As of January 31, the company had assets worth GBP170 million. In the fiscal year ending on January 31, 2023, their adjusted loss before interest, taxes, depreciation, and amortization amounted to GBP33.5 million.
Unlocking Synergies for Profitable Growth
Chief Executive Michael Murray expressed confidence in leveraging Frasers Group’s industry-leading ecosystem to unlock synergies and drive profitable growth for Matches. While the global luxury market may currently be facing challenges, Frasers Group aims to capitalize on opportunities and ensure a successful future for Matches.
Positive Market Response
As news of the acquisition broke, Frasers Group’s shares showed a positive response. At 1052 GMT, the shares climbed by 5.0 pence or 0.5%, reaching 934.0 pence. Year-to-date, they have recorded an impressive increase of 31.55%.
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