boohoo.com acquires PrettyLittleThing in seven-figure deal

Online fashion retailer boohoo.com plc has acquired rival ecommerce business PrettyLittleThing in a seven-figure deal.

Manchester-headquartered boohoo paid a cash consideration of £3.3m for the firm and expects the transaction to boost its presence both in the UK and overseas.

As part of the deal, boohoo will acquire 66% of PrettyLittleThing’s issued share capital, pro rata to an option agreement to acquire 100% for £5m dating back to March 2014.

The remaining 34% will be retained by PrettyLittleThing’s management team as an incentive to achieve a set of revenue and EBITDA targets over the next five years.

On February 28 2022, boohoo will have the option of acquiring the remaining 34% at market value.

boohoo group chairman Peter Williams said: “PrettyLittleThing was always going to be a natural fit with boohoo.

“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.”

He continued: “We believe this is an excellent opportunity to extend the group’s overall customer appeal through two distinct, complementary brands while further enhancing the group’s strong growth trajectory.

“We look forward to building on PrettyLittleThing’s success and we welcome Umar and his team to the group.”

PrettyLittleThing’s chief exec, Umar Kamani, commented: “PrettyLittleThing has been a great success story over the last couple of years.

“Our youthful management team enables us to engage directly with our target market, pushing the boundaries of innovation in the celebrity led world of fast fashion.”

He added: “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.

A team from investment bank GCA Altium, headed up by CEO Phil Adams, director Paul Lines and associate Jon Stead, provided boohoo with strategic advice on the transaction. Zeus Capital served as nominated advisor and broker.

Law firm Pannone Corporate advised PrettyLittleThing.