Danish brand house Bestseller has bought British off-price etailer M and M Direct for £140m, cancelling the online business’ plans to float later this month.
M and M Direct was expected to list on the Alternative Investment Market (Aim) this month, with owner TA Associates looking to offload at least half of the company.
Bestseller’s communication director Mogens Werge said the company would “continue to develop” M and M Direct as a market leader.
He added: “We trust that the collaboration will become beneficial for both our companies in the long run, and we look forward to be working with and learning from M and M on areas like mobile sales.”
The two businesses will remain separate, but Bestseller said it “hopes to benefit from the knowledge in M and M Direct”.
Sales at M and M Direct grew 10% to £109.5m for the year to February 24 2013, with EBITDA up 19% to £8.7m.
The move further boosts Bestseller’s online presence following its owner Anders Holch Povlsen buying a 10% share in German etailer Zalando last August.
Bestseller also owns a 28% share in Asos.