Myer to acquire Premier’s Apparel Brands business

Australian retailer Myer is all set to acquire Premier’s Apparel Brands business in Australia and New Zealand consisting of Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E in exchange for the issue of new shares in the company.

As part of the agreement, Premier will distribute its existing and new shareholding in Myer to shareholders and focus on and invest in the Peter Alexander and Smiggle brands and their local and international growth. The 890.5 million shares to be issued to Premier represent 51.5 percent of Myer’s enlarged share base.

Commenting on the development, Solomon Lew, chairman of Premier said: "Myer and our Apparel Brands will be stronger together – delivering vertical integration, scale, additional margins and loyalty opportunities. Meanwhile, Premier’s board will be focused on the ongoing growth and performance of Smiggle and Peter Alexander, including as they pursue local and international growth opportunities.”

Highlights of the transaction between Myer and Premier

In FY24, Apparel Brands delivered revenue of 791 million Australian dollars, corresponding to 76 million Australian dollars EBIT on pre-AASB 16 basis and 87 million Australian dollars on a post-AASB 16 basis.

After completion of the transaction, Premier will continue to own its strategic stake in Breville and real property assets.

The company said in a release that Solomon Lew will join the board of Myer, in addition to his role as chairman of Premier and Terry McCartney will also continue as a director of both Premier and Myer.

Apparel Brands to merge with Myer

The company added that the combination of Myer and Apparel Brands is expected to create a leading integrated fashion retailer across specialty and department store retail in Australia and New Zealand.

Myer has indicated that, after the transaction, it will have 4 billion Australian dollars revenue and 152 million Australian dollars pre-AASB16 EBIT on a pro forma FY24 basis, a combined footprint of 783 stores, a portfolio of eight specialty retail brands, and a significant range of brands sold through the Myer store network and a combined workforce of over 17,300 employees.

Myer expects that coming together with Apparel Brands will generate combination benefits of at least 30 million Australian dollars earnings p.a. for Myer on a run-rate basis over the short to medium term across a range of areas.