Deal includes Topshop, Topman, Miss Selfridge and HIIT brands.
ASOS has this morning (February 1) confirmed the acquisition of Topshop, Topman, Miss Selfridge and HIIT brands for £295 million.
The company described the acquisition as a “hugely exciting moment for ASOS”, saying that the former Arcadia brands “resonate well” for its core customer base.
The deal includes the stock and brands, but does not include the bricks and mortar stores. ASOS is paying £265m for the brands and a further £30m for the stock.
“The acquisition of these iconic British brands is a hugely exciting moment for ASOS and our customers and will help accelerate our multi-brand platform strategy,” commented Nick Beighton, ceo of ASOS. “We have been central to driving their recent growth online and, under our ownership, we will develop them further, using our design, marketing, technology and logistics expertise, and working closely with key strategic retail partners in the UK and around the world.”
The company stated: “These are strong brands that resonate well with our core customer base. Brand equity is strongest in the UK and they have an established presence in both the US and Germany, two of our key strategic markets.”
The brands will now join ASOS’ Venture Brands portfolio which also includes Collusion, AsYou and Reclaimed Vintage.
Asos plans to maximise the opportunity for the brands global distribution and its international warehouse infrastructure and localised online experiences will support continued growth through the company-owned platform. The company also aims to increase the brands’ reach and accelerate US strategy via partnership with Nordstrom in this key market, reported Fashion United.
In 2019, before the pandemic, the brands delivered total revenues of approximately £1 billion across all channels. Despite business and supply challenges over the last year, the brands continued to grow through online and retail partnership channels, with total revenues in 2020 of approximately £265 million as brand sales via retail partners grew 16% and brand online sales grew 5%. Growth on the ASOS platform has been at 41% in P1 FY21.
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