Next, the British clothing group, has sealed a deal to acquire FatFace, a popular fashion chain, for a valuation of £ 115.2 million. This acquisition signifies another significant addition to Next’s burgeoning portfolio, underlining the company’s strategic growth in the retail market.

Next, currently operating across 460 stores in the UK and Ireland with a robust online presence spanning over 70 countries, has been steadily expanding its “Total Platform” business. This year alone, the company acquired the Cath Kidston brand and increased its ownership stake in the upscale fashion chain Reiss to 72 per cent.

In the previous year, Next made strategic acquisitions, including fashion retailer Joules, furniture brand Made.com, and a minority stake in the baby goods retailer JoJo Maman BéBé. The company’s approach involves securing stakes in or acquiring smaller retailers, contributing to its expansive retail presence.

As part of the deal, Next will make payments to the current owners of FatFace, a consortium of financial institutions such as Alcentra and Lloyds Banking Group, through a combination of cash and new Next shares. The acquisition, slated for completion in the coming weeks, will grant Next a 97 per cent equity stake in FatFace, with the remaining 3 per cent retained by the existing management team.

FatFace, known for its online presence and 180 stores in the UK and Ireland, along with 28 outlets in the United States and Canada, reported impressive financial figures. In the fiscal year ending May 2023, the company achieved a pre-tax profit of £ 19.5 million on sales totaling £ 282 million, marking a notable 15 per cent growth compared to the previous year.

Will Crumbie, who has been serving as FatFace’s CEO since 2021, will continue to lead the business under Next’s ownership. The acquisition is not anticipated to have a substantial impact on Next’s group profit for the current fiscal year.