Fashion retail group, Noni B has entered an agreement to acquire Pretty Girl Fashion Group from Consolidated Press Holdings.
The deal includes $65 million in cash, $9.7 million in shares through a placement of 7.72 million shares in Noni B Group at $1.25 a share, and up to $7.3 million in cash over two tranches based on the revenue performance of existing Pretty Girl stores in FY2017 and FY2018.
“This acquisition is transformational for Noni B and brings together four highly synergistic and complementary brands with each catering to its own loyal customer,” said Scott Evans, MD and CEO, Noni B Group.
“Over the past 12 months, the team at Noni B have restored the business to profitability.
“With the acquisition of these already strong and profitable retail brands, the Noni B Group will become one of the pre-eminent apparel retailers in Australia with a focussed market position.”
Based on unaudited management accounts, Noni B Group and Pretty Girl generated combined revenues of $334 million and EBITDA of $18 million for FY2016.
The acquisition of Pretty Girl will be funded by bank debt of $30 million.
“The expanded brand portfolio and our significantly increased store footprint create the opportunity to invest strategically in customer experience and omnichannel to drive additional growth and profitability for the group,” said Evans.
Noni B chairman, Richard Facioni said the acquisition creates a business of “signicant scale and growth potential.”
“The transaction is particularly exciting for investors, as it creates a portfolio that combines well established brands with high customer loyalty, in Noni B and Rockmans, and brands with significant growth potential in W.Lane and BeMe,” he said.
Earlier this year, Noni B reported its strongest half year performance in six years.
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