Frasers takes control of Hugo Boss as stake crosses 50%

British retail group Frasers Group has crossed the 50 percent threshold in Hugo Boss AG, turning the Metzingen-based fashion house into a subsidiary of the Mike Ashley-controlled company.

Frasers said on Friday it had acquired a further 198,666 Hugo Boss shares for around 7.6 million euros, funded from existing cash. The purchase lifts its holding to approximately 34.5 million shares, or 50.08 percent. Hugo Boss’s earnings, assets and liabilities will now be consolidated into the Frasers accounts. Frasers said passing the threshold was in the best interests of its investors.

The deal caps a months-long campaign. In June, Frasers launched a cash offer of 38 euros per share, which Hugo Boss’s management and supervisory boards rejected as financially inadequate. The bid still raised Frasers’ direct stake from 26.06 percent to 47.89 percent by August, and a filing on October 19 showed it had reached 48.8 percent. Frasers first invested in Hugo Boss in 2020 with a 5 percent stake. Based on regulatory filings, FashionUnited estimates Frasers has paid roughly 1.2 billion euros in total to reach its majority stake, of which around 475 million euros went on shares tendered in the takeover offer.

Control has shifted in parallel. Supervisory board chairman Stephan Sturm stepped down and Frasers CEO Michael Murray was elected to the role in September. CFO Yves Müller left shortly after, with Ivica Maric taking over as CFO and COO on October 1. Hugo Boss also ended its share buyback programme early.

Hugo Boss joins a growing Frasers portfolio that includes Sports Direct, House of Fraser and Flannels. Earlier this month, the group launched Frasers Group Luxury, combining Flannels, Harvey Nichols, acquired this year, and US boutique The Webster into a division generating over one billion pounds in revenue, alongside stakes in Mulberry, Burberry and Hulcan’s Mile. Frasers raised its Burberry holding to 7.42 percent in October and disclosed an 8.78 percent stake in Under Armour.

Frasers shares closed 0.3 percent higher on Friday, while Hugo Boss ended 0.8 percent lower. In the FashionUnited Top 100 Index, Frasers ranks 47th with a market capitalisation of 5 billion USD, while Hugo Boss ranks 60th at 2.9 billion USD.