Wed, 14 Dec 2016 | BUSINESS SALE
Online retailer Boohoo has acquired a majority stake in fellow fashion firm Pretty Little Thing for £3.3 million.
Peter Williams, Boohoo's chairman said Pretty Little Thing was a "natural fit" and would complement Boohoo's "inclusive and innovative" brand.
Pretty Little Thing was established in 2012 by Umar Kamani, the son of Boohoo founder Mahmud Kamani.
Under Umar’s stewardship the brand has enjoyed significant growth and now dispatches around 20,000 deliveries worldwide every day.
Boohoo offers “cutting-edge design with an affordable price tag” and is a prime example of ‘fast fashion’ retail, with as many as 100 new pieces being added to its website every day.
As part of the deal Boohoo will take 66 per cent of Pretty Little Thing’s issued share capital, with the remaining 34 per cent being used to “incentivise” Umar Kamani and his management team to meet revenue targets.
In 2022, Boohoo will have the option to buy the outstanding 34 per cent at market value.
Peter Williams said: “Umar and his team are to be congratulated for creating a fantastic brand, which complements Boohoo's own inclusive and innovative brand, and we are delighted to add this fast growing, international business to the group.”
Umar Kamani said: “As part of the Boohoo group, we will continue to build on our strong brand positioning and we are excited by the prospect of continuing to anticipate and set trends."
Boohoo announced the acquisition as it posted a trading update, raising its estimate for full-year sales growth to between 38 per cent and 42 per cent, boosted by strong Black Friday and Christmas trading.
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