The joint venture headed by Heartland, which represents ASOS shareholder Anders Holch Povlsen and his fashion company Bestseller, has acquired Topshop and Topman from ASOS.
The new joint venture was founded following a competitive selling procedure for the brands and sees Heartland indirectly hold a 75 per cent interest in the joint venture for a US $ 176 million cash payment.
ASOS Holdings Limited owns the remaining 25 per cent of the company. In exchange for a royalty fee, the online fashion store is granted certain design and distribution rights for Topshop and Topman, enabling it to carry on with online marketing and sales of the two brands.
As previously disclosed, ASOS anticipates that the transaction will be “increasingly EBITDA accretive over time” but will negatively affect EBITDA in the current fiscal year.
It promises a relaunch of the brands during the next six months and will facilitate their growth. Additionally, it intends to increase their reach both locally and online through carefully chosen wholesale partners.
José Antonio Ramos Calamonte, CEO of ASOS, stated when the deal was revealed last month, “Topshop and Topman have made good progress since we acquired the brands in 2021. Their potential is demonstrated by their recent joint venture with Heartland, which will allow Topshop and Topman reach a wider audience worldwide.”
For US $ 346 million, ASOS acquired Topshop and Topman, the former jewels in the crown of the defunct Arcadia fashion business.
The brand and online company were the only things purchased in that agreement, which led to the closure of every physical retail location for Topshop and Topman. The e-commerce websites were integrated by ASOS into its own website.