Next has acquired young fashion brand Lipsy for £17.4m.
The share capital was acquired for £14m and loan notes repaid of £3.4m. Lipsy was otherwise debt free at the date of acquisition. Lipsy has sales of about £20m in the year to June.
Lipsy sells via a number of retailers on the high street, in catalogues and on the internet. It also sells direct through its own website and will open its first standalone store in Brent Cross, London, in November.
Next said: “There is no intention for Lipsy to cease supplying its products to existing customers, nor is there any intention to sell Lipsy products in Next stores. Lipsy products already feature in the Next Directory and this will continue.”
Lipsy’s existing executive team, led by Jeremy Stakol as managing director, will continue to develop and run the business from their offices in London. Next said it will provide the capital, expertise and infrastructure to accelerate the development of Lipsy into a leading brand in the younger women’s fashion market.
Next chief executive Simon Wolfson said: “We are delighted to welcome Lipsy to the Next group and look forward to helping develop their business in the years ahead.”
Lipsy chief executive Jeremy Stakol said: “The prospect of working with one of the UK’s leading fashion retailers to accelerate the development of Lipsy is exciting. Next’s sourcing, supply chain, systems and logistics are among the best in the industry and we look forward to working with Next’s experienced management team.”