Business
Acquisition of Warburg Pincus’ Interest in Reiss
Acquisition of Warburg Pincus’ Interest in Reiss.
About this update from Next Plc
[{"type":"text","content":"\n\n \n\n\n\nDate:\n\n\nFriday 1 September 2023\n\n\n\n\nContacts:\n\n\nAlistair Mackinnon-Musson\nRowbell PR - NEXT\n\n\[email protected]\nTel: 020 7717 5239\n\n\n\n\n \n\n\nJonathan Blanchard, COO\nReiss\n\n\nTel: 0203 075 2233\n \n\n\n\n\n \n\n\nJenna Ward\nWarburg Pincus - Communications\n\n\[email protected] \nTel: 0207 306 3805\n\n\n\n\nPhotographs:\n\n\nReiss images can be downloaded via: https://we.tl/t-h4pH5B2E6Q \nNEXT images: http://www.nextplc.co.uk/media/image-gallery/campaign-images\n\n\n\n\nAcquisition of Warburg Pincus' Interest in Reiss\nNEXT plc (\"NEXT\") announces that it has agreed1 the terms of a transaction whereby NEXT and the Reiss family will acquire the entirety of Warburg Pincus' (\"WP\") 34% interest in the Reiss Group (\"Reiss\") for total consideration of £128m on a fully diluted basis. The transaction is subject to customary conditions including regulatory approvals.\n1. NEXT entered into binding agreements to effect the transaction on 21 August 2023.\nUpon completion of this transaction, which is subject to the satisfaction of the conditions and expected to take place in mid-October 2023, NEXT's holding in the Reiss business will increase from 51% to 72%. The Reiss family's holding will increase to 22% and the Reiss management team will hold 6% equity in the business. Following completion of this transaction, Reiss's results will be consolidated into the NEXT plc accounts. \nThe transaction will not materially impact the NEXT Group's underlying profit before tax or EPS in the current year. However, there will be a non-recurring, non-cash, exceptional gain in the NEXT Group accounts reflecting the increased value of its investment in Reiss and its consolidation into the NEXT Group accounts in accordance with IFRS3 (Business Combinations). For clarity, this is an accounting gain and does not contribute to the underlying profitability of the Group. Further details of this transaction will be set out in our Half Year Results announcement on 21 September.\nToday's announcement follows a period of strong continued growth for Reiss under the leadership of CEO Christos Angelides. In the year to 28 January 2023, Reiss achieved total sales of £324.6m, an increase of 26.4% on the prior year. ...