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Myer has launched a bid to acquire a group of retail clothing brands including Just Jeans and Jay Jays.
The department store announced today that it has approached billionaire Solomon Liu’s Premier Investments to acquire his portfolio of apparel brands.
As well as Just Jeans and Jay Jays, it also includes Portmans, Jacqui E and Dotti with 717 stores in Australia and New Zealand, which generated $845 million in revenue last financial year.
The move will see Premier issue shares in exchange for the acquisition and Lew will remain Myer’s largest shareholder – albeit with a smaller stake than what Premier currently holds in Myer.
Liu will also join Mayer’s board under the deal.
“Against the changing retail landscape, Myer has launched an in-depth review of its strategic direction and growth opportunities… as part of this review, Myer is exploring both organic and inorganic investment opportunities that align with our strategic focus areas to create value for Myer shareholders,” she said.
“It quickly became clear that the idea of a combination of the Myer and Apparel brands offered significant potential synergies and growth prospects, which clearly warranted further exploration.”
Liu and Premier indicated they would be open to the deal, although they said it would need further consideration.
“Premier also believes there may be a significant opportunity for both businesses from the proposal,” it said in a statement to the ASX.
“The proposed combination has the potential to deliver a step change in Myer’s scale and market position, deliver synergies and drive sustainable revenue growth.
“Premier shareholders would benefit given Premier’s existing shareholding in Myer and because Premier shareholders would become Myer shareholders.”
The deal will require shareholder and board approval from both Myer and Premier, as well as regulators such as the ACCC and ASIC.
The share price of both companies jumped after the announcement of the proposed merger – Myer by 20%, Premier by just under 7%.
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