Naked Brand Group targets expansion with planned acquisition

Benjamin Fitzgerald

Опубликовано
7 сент. 2018 г.

Naked Brand Group on Thursday announced it has entered into an agreement to acquire a leading U.S. online retailer for $42.5 million, in bid to bolster the Sydney firm's global e-commerce division.

With the name of the e-tailer not disclosed, the Sydney-based apparel and swimwear company said the US$42.5 million purchase price will include cash, stock and assumption of approximately $6.1 million of the American retailer’s debt.

The acquisition signals a shift in Naked’s major focus for the next twelve months, which includes expanding the company’s direct to consumer product and brand mix.

Moreover, the purchase would take Naked's e-commerce contingent to 43% of projected group revenues, said the group in a statement, with overall direct to consumer channels (including owned retail and outlet stores) reaching 70% of projected revenue contribution, for FY2019.

"We are continuing to make strides in our digital and e-commerce focused strategy that we believe will accelerate our growth trajectory and drive meaningful EBITDA contribution in FY2019,” said Justin Davis-Rice, Chief Executive Officer of Naked Brand Group Limited.

“The acquisition would augment our proprietary digital operating platform to create ongoing synergies that we believe will produce over $70 million in e-commerce revenues in the United States for FY2019 and will be accretive to Naked shareholders over the long term."

The intimate apparel industry in the United States is expected to grow to US$250 billion by 2022.

Naked Brand Group designs and distributes a portfolio of 11 company-owned and licensed lingerie and swimwear brands including Naked, Bendon, Bendon Man, Davenport, Fayreform, Hickory, Lovable, Pleasure State, Heidi Klum Intimates, Heidi Klum Man, Heidi Klum Swim.

Its products are available in 44 countries worldwide through 6,000 retail outlets, and online.