Asos has acquired Topshop and other Arcadia brands in “a hugely exciting moment” for the online fashion specialist.
Asos is paying £265m for Topshop, Topman, Miss Selfridge and athleisure brand HIIT. The etailer said it would use its “market-leading capabilities to drive growth globally and accelerate our Asos brands strategy”.
Asos said that the purchase of the brands represented a “strategically compelling opportunity”. Sales of the brands on its website rose 41% in the first part of the year, which it said showed they resonated with its customers.
Asos will strengthen the brands, bought out of administration following the collapse of Sir Philip Green’s Arcadia fashion empire, by bringing its own design, buying and marketing strengths to bear.
It will also work with “the best retail partners to accelerate global opportunities”, such as by extending an existing partnership with Nordstrom in the US.
The deal is expected to complete this week and to be margin-accretive and deliver a double-digit return on capital in the 2022 financial year. Asos is also purchasing £30m of stock and another £35m of product ordered.
Asos chief executive Nick Beighton said: “We are extremely proud to be the new owners of the Topshop, Topman, Miss Selfridge and HIIT brands.
“The acquisition of these iconic British brands is a hugely exciting moment for Asos and our customers, and will help accelerate our multi-brand platform strategy.
“We have been central to driving their recent growth online and, under our ownership, we will develop them further, using our design, marketing, technology and logistics expertise, and working closely with key strategic retail partners in the UK and around the world.”
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