UK mother and baby brand JoJo Maman Bébé has been acquired by UK clothing retailer Next Plc and a range of mutual funds and investment vehicles managed by Davidson Kempner Capital Management.
Next acquired a 44 percent stake in the UK company from existing shareholders’ shares, while other investment firms took over the remaining 56 percent.
Upon completion of the transaction, Next will make an equity investment of £16.3 million, funded from its own cash resources.
As part of the agreement, JoJo Maman Bébé founder Laura Tenison will leave the company. She will be replaced by former commercial director Gwynn Milligan, who will return to the position of CEO.
Layoffs are not expected.
Next infrastructure for international growth
“The development of JoJo from a kitchen table start-up to the UK’s leading boutique brand for mothers and babies has been my priority over the past 30 years. I am extremely proud of our achievements and excited about the opportunities this new partnership offers for the future of the brand,” Tenison said in a statement.
In a letter to company employees seen by FashionUnited, Tenison also said that Next has “exciting plans for faster brand expansion and growth,” opening up potential opportunities in new markets.
JoJo will retain his management and creative independence while benefiting from the combined experience of Next and Davidson Kempner.
In addition, the brand will continue to operate its 87 retail stores and its own webshop, with plans to integrate Next’s “Total Platform” arrangement to further expand infrastructure and capabilities and support international growth.
“JoJo Maman Bébé is a preeminent brand in maternity wear and childrenswear, markets where we have a long history. As such, Next is excited at the prospect of supporting JoJo with its Total Platform software in the next phase of its growth and development,” said Next CEO Simon Wolfson.
“We are excited to see what can be achieved by combining JoJo’s exceptional product with the infrastructure of Next and Davidson Kempner as our investment partner,” added Wolfson.
This translated article originally appeared on FashionUnited.uk.