Myer has made an offer to buy five fashion brands from Premier Investments’ clothing division in exchange for $950 million.
The retail giant is set to merge with Premier Investments’ clothing division, Apparel Brands, acquiring Just Jeans, JayJays, Portmans, Dotti and Jacqui-E brands and adding 780 stores to its fast-growing portfolio.
As part of the deal, Premier Investments will exchange its five brands for 890.5 million shares in Myer and a cash payment of $82 million; these shares will represent more than 51 percent of the retail giant.
Premier Investments will retain two brands, Smiggle and Peter Alexander, as part of the deal.
“This is an opportunity for our team and our shareholders to play an important role in the future of the Australian and New Zealand retail landscape,” said Solomon Lew, chairman of Premier Investments.
Myer has 56 department stores and combined with Premier Investments’ 719 stores, the retail giant will soar past 780 stores in Australia and New Zealand and add another 17,300 employees to its portfolio.
Speaking to investors on Tuesday morning, Myer chairman Olivia Wirth said the combination of brands would be “transformational” for the company.
“If approved by shareholders, it will create a leading retail group with more than 780 stores in Australia and New Zealand, with a large and highly engaged customer base and capital to fund future investment and growth,” Ms Wirth said.
“Myer and Apparel Brands have highly complementary store surfaces and customers who will benefit from a comprehensive omnichannel ecosystem that allows them to connect with the group’s beloved brands when and how they want.”
Myer has made an offer to acquire five fashion brands from Premier Investments: Just Jeans, JayJays, Portmans, Dotti and Jacqui-E
Just Jeans is one of five fashion brands that Myer will acquire from Premier Investments
Mr Lew has long been interested in Myer’s success.
As a teenager, Mr Lew supplied dresses to the Myer Emporium and later acquired a nearly 10 percent stake in Myer Emporium Ltd in 1983.
In 1991, Mr Lew had claimed the seat of Coles Myer chairman, but was ousted in 2002.
Mr Lew began sharing his concerns with Myer management in 2017, openly criticizing then-chairman John King and often calling for a shake-up of the board.
Mr King announced his retirement as executive chairman in June 2023 and stepped down from Myer in 2024.
It appears Dotti will be acquired by Myer in a $950 million deal with Premier Investments
As part of the acquisition of Apparel Brands, Mr Lew will join Myer’s board as a non-executive director, and Ms Wirth as executive chairman.
Myer shareholders will vote on the takeover at the end of January, with the ink on the deal expected to dry in early 2025.