Myer launches massive bid to take over  Aussie fashion retail group

Myer has launched a massive takeover bid for a group of retail clothing brands including Just Jeans and Jay Jays.

The department store giant announced on Monday that it’s interested in buying the Apparel Brands portfolio, which is owned by billionaire Solomon Lew’s Premier Investments. 

The portfolio of renowned clothing brands, which has more than 700 stores across Australia and New Zealand and also includes Portmans, Jacqui E and Dotti, generated $845million in revenue in the last financial year. 

Mr Lew, who already owns a 31 per cent stake in Myer, would land a seat on the board under the proposed terms of the deal.

The announcement played well with investors on Monday, sending Myer’s share price north of 20 per cent, while Premier’s rose to just under seven per cent.  

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Myer’s new executive chair Olivia Wirth said the acquisition offered the retail giant ‘significant opportunity’ to boost its business.

‘Myer is exploring both organic and inorganic investment opportunities that align with our strategic focus areas to create value for Myer shareholders,’ she said.

‘It quickly became clear that the idea of a combination of Myer and Apparel Brands offered significant potential synergies and prospects for growth, evidently warranting further examination.’

Lew and Premier said they would be open to the deal but insisted it needed to be considered further. 

‘The proposed combination has the potential to deliver a step change in Myer’s scale and market position, deliver synergies and drive sustainable earnings growth,’ its board said in a statement to the ASX.

‘Premier shareholders would benefit given Premier’s existing shareholding in Myer and because Premier shareholders would become shareholders in Myer.’

Apparel Brands is forecast to rake in $130million in profit in the next financial year, while Myer’s profit for calendar year 2023 was $88million, E&P Capital retail analyst Phillip Kimber told Seven News.