UK retail giant bids for designer brand for £1.73 billion

On Thursday it was confirmed that Mike Ashley’s Frasers Group has made a cash offer for Hugo Boss, in a deal worth almost £1.73 billion

The group owns Sports Direct, House of Fraser, Flannels, GAME, USC, Evans Cycles, Jack Wills, and Gieves & Hawkes.

Frasers is a long-term investor in Hugo Boss and said it “remains supportive” of both Stephan Sturm, the chair of the supervisory board, and Daniel Grieder, chief executive, in pursuit of their “sustainable growth strategy whilst continuing to build brand equity”. 

The Sports Direct owner believes that increasing Frasers’ investment in the brand will “create value for Frasers’ shareholders”.

At date of the announcement, Frasers held 26.6 per cent of the share capital and 26.58 per cent (excluding treasury shares) of the voting rights of Hugo Boss. 

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The UK retail giant, which has a current market value of around £3.45 billion, said it would hope to complete the deal in the second half of this year if it is approved and receives regulatory approvals.

Sports Direct has stores in Cowley, and West Way Retail Park with brands GAME, USC, Evans Cycles and Jack Wills operated as concessions within this larger stores as part of previous takeover deals.

Meanwhile, luxury designer Flannels can be found in Westgate shopping centre.

Hugo Boss has stores within the outlet shopping centre Bicester Village and Westgate shopping centre in Oxford city centre.