Asos rejected £215m Shein Topshop bid for lower offer
The move is expected to have a £10m to £20m negative impact on EBITDA for FY25 yet will be "increasingly EBITDA accretive over time", according to the company
Asos reportedly declined a £215m bid for Topshop from Shein and Authentic Brands Group, in favour of its joint venture with Heartland, according to The Sunday Times.
The retailer agreed to sell a 75% stake in Topshop and Topman for £135m in a deal that valued the two brands at £180m.
Heartland is an investment firm owned by the family of retail billionaire Anders Povlsen.
Asos stated that the agreement with Heartland was in the “best interest of shareholders”.
It said the deal will allow it certain design and distribution rights for the brands in return for a royalty fee to enable it to continue marketing and selling the brands online.
The move is expected to have a £10m to £20m negative impact on EBITDA for FY25 yet will be “increasingly EBITDA accretive over time”, according to the company.
José Antonio Ramos Calamonte, Asos CEO, said: “We’re pleased to be making this announcement today which is an important step in Asos’ continued transformation. The joint venture and the launch of the refinancing will accelerate our strategy to both offer customers the best and most relevant product and to turn Asos into a company that delivers sustainable, profitable growth.
“Topshop and Topman have made good progress since we acquired the brands in 2021. The new JV with Heartland is testament to the brands’ potential and the partnership will help bring Topshop and Topman to more customers globally. Asos will continue to focus on what we do best – designing the best fashion and providing a destination for style.”
