Next Plc has secured additional shares in the Reiss brand.
The British fashion retailer and the Reis family are taking over 34 percent of Reis’ shares from Warburg Pincus for a total price of 128 million British pounds (about 149.6 million euros), and thus all of the shares held by the US private equity company , Next announced on Friday.
Next made the binding agreements to carry out the transaction in mid-August. However, it is subject to the usual conditions, including regulatory approvals. The company expects the deal to close in mid-October, after which Next will increase its stake in Reis from 51 percent to 72 percent after securing a majority stake last year. The Reiss family’s ownership will increase to 22 percent and the Reiss management team will own 6 percent of the company.
Reiss had total sales of £324.6 million for the fiscal year ended January, a year-on-year increase of 26.4 percent. Pre-tax profit for the same period was £51.6m.