Fashion retailer New Look is to be bought by South Africa’s fourth richest man, Christo Wiese in a £1.9 billion deal. The transaction comes only one month after his £1.3 billion purchase of fitness chain Virgin Active.
New Look, is ending plans for a stock market floatation and will sell up to Christo Wiese’s private equity firm Brait instead.
The purchase highlights the continued appeal for overseas investors to buy established British high street retail brands. The new private equity ownership should give New Look the extra investment needed to turn it into a successful multi-channel fashion retailer with a growing international presence.
Anders Kristiansen, CEO of New Look said: “We are delighted to have announced this transaction. Brait have a track record of long-term and supportive investments – they give us the perfect platform to continue our strategy of growing the New Look brand in the UK, Europe and China. I’d like to take this opportunity to thank our existing shareholders for their support over the years, and I am looking forward to working with Brait in the future.”
John Gnodde, CEO of Brait added: “New Look is an attractive investment opportunity for Brait – it is a market leading brand, with a strong track record of double digit EBITDA growth, solid Cashflow conversion, international reach, and the potential to grow rapidly in a number of geographic markets including China. We have been highly impressed with the management team and look forward to partnering with them.”
