Majestic Wines has acquired customer-funded online wine business Naked Wines for £70 million, setting up its founder Rowan Gormley as CEO of the whole group.
Majestic said that the acquisition creates a “significant strategic opportunity” for both businesses by combining Naked Wines’ online and e-commerce strengths with Majestic’s national store network.
Majestic and Naked Wines will continue to operate as independent brands and the Naked Wines senior team will remain with the business.
Phil Wrigley, Majestic's chairman, commented: "The acquisition of Naked Wines represents a transformational deal. The two businesses have significant strengths which are very complementary. Majestic's distribution skills, a nationwide UK store network and customer service orientated knowledgeable staff, are a perfect fit with Naked Wines' unique sourcing and selling model. This acquisition will significantly accelerate the planned development of Majestic's online capabilities whilst providing Naked Wines with a nationwide store network to allow a Click & Collect delivery option for its customers. In addition, this acquisition opens up attractive international markets, increasing our potential customer reach eightfold.
“I am delighted that Rowan has agreed to be the new CEO for the enlarged Majestic. He has a fantastic track record as a successful businessman, innovator and entrepreneur in the wine industry and beyond. He has also assembled a deep pool of talent at Naked Wines with a similar culture to Majestic."
Mr Gormley commented: "The combination of Naked Wines and Majestic provides the very exciting opportunity to build a world class wine retailer, serving customers who are looking for inspiration that the supermarkets cannot provide. This is great news for the customers, staff and suppliers of both businesses and will ultimately create significant shareholder value."