Online fashion giant Asos has today announced a new joint venture with Heartland, the holding company of Danish fashion retailer Bestseller, to sell a majority stake in the Topshop and Topman brands.
Asos said in a statement published to the City this morning that, after a “competitive sale process”, it has entered into an agreement in which Heartland will hold a 75% interest in the venture in a deal worth £135m.
Asos will hold the remaining 25% in the joint venture, representing a total valuation of £180m for the two brands.
Heartland is an investment and holding company “representing the interests” of the Holch Povlsen family and their business Bestseller.
Asos said in a statement that the joint venture will grant the fashion retailer “certain design and distribution rights” for the Topshop and Topman brands, while providing a royalty fee that enables it to continue selling and marketing the brands online.
Asos said the deal is expected to have between a £10m and £20m “negative impact” on its EBITDA for the 2025 full year.
The retailer added that the board “unanimously believes” the deal is in the best interests of its shareholders and, as part of the deal, it will relaunch Topshop.com within six months of the joint venture being completed.
Asos chief executive José Antonio Ramos Calamonte said: “We’re pleased to be making this announcement today, which is an important step in Asos’ continued transformation.
“The joint venture and the launch of the refinancing will accelerate our strategy to both offer customers the best and most relevant product and to turn Asos into a company that delivers sustainable, profitable growth.
“Topshop and Topman have made good progress since we acquired the brands in 2021. The new joint venture with Heartland is a testament to the brands’ potential and the partnership will help bring Topshop and Topman to more customers globally.
“Asos will continue to focus on what we do best – designing the best fashion and providing a destination for style. Through the joint venture, new opportunities, both online and offline, can be explored and we are excited to continue to be part of the brands’ future while also realising the best value structure for Asos shareholders today.”
Heartland chief executive Lise Kaae said: “At Heartland, we are pleased to enter into this joint venture with Asos, bringing the best of the Topshop and Topman brands to customers globally, while supporting Asos’ strategy to obtain a more efficient capital allocation.
“We are committed to and look forward to working closely with our partners in a strong alliance.”
The news comes alongside the announcement of a refinancing that involves an offering of around £250m convertible bonds, which are due in 2028, and a partial cash repurchase of outstanding £500m convertible bonds, due by 2026.
Asos has also announced an extension of its lending facility agreement with Bantry Bay Capital to May 2027, with the option of an additional 12-month extension.
The fashion giant also provided some insight into its current performance and said it expects full-year adjusted EBITDA to hit the top end of estimates, with sales expected to fall slightly below the pledged guidance.
Asos added that it has made “good progress” on its ‘back to fashion’ strategy to date.
No comments yet