Frasers Group has acquired the luxury online fashion retailer Matches for £ 52 million (US $ 66 million). The sale represents a significant loss for Apax Partners, which purchased the business in 2017 during a bidding war when its valuation stood at US $ 800 million.
Venture capital companies Scottish Equity Partners and Highland Europe, as well as Matchesfashion.com founders Ruth and Tom Chapman, retained minority holdings in the company even though the precise financial terms of Apex Partners’ acquisition have not been made public.
The acquisition represents a major accomplishment as well as a challenge for Mike Ashley’s Frasers, whose goal was to take the business to a higher level in the fashion industry by acquiring independent boutiques that catered to high-end consumers, such Flannels, Tessuti, and Cricket. This is the group’s first foray into a sizable, global online luxury market.
Venture capital companies Scottish Equity Partners and Highland Europe, as well as Matchesfashion.com founders Ruth and Tom Chapman, retained minority holdings in the company even though the precise financial terms of Apex Partners’ acquisition have not been made public.
The acquisition represents a major accomplishment as well as a challenge for Mike Ashley’s Frasers, whose goal was to take the business to a higher level in the fashion industry by acquiring independent boutiques that catered to high-end consumers, such Flannels, Tessuti, and Cricket. This is the group’s first foray into a sizable, global online luxury market.
After the sale, Matches’ current CEO, Nick Beighton, is anticipated to continue in his role despite multiple changes in leadership. According to a company release, they are “developing a strategy to successfully build on the underlying strength of the business while rapidly unlocking synergies with the Frasers team.”
Commenting on the acquisition, Michael Murray, Chief Executive Officer of Frasers, said, “Matches has always been a leader in online luxury retail and has incredible relationships with its brand partners. This acquisition will strengthen Frasers’ luxury offering, further deepening our relationships and accelerating our mission to provide consumers with access to the world’s best brands.”
Nick Beighton, Chief Executive Officer of Matches, commented, “Being part of Frasers, with their utter commitment to luxury, will give this business access to greater scale, best-in-class retail expertise and the financial stability it needs to more effectively deliver for our brand partners and our customers.”
