Next, a UK-based retailer secures a 34% stake in Reiss Group from Warburg Pincus.

04 Sep, 2023

Next, a UK-based retailer secures a 34% stake in Reiss Group from Warburg Pincus

Next plc has formally committed to acquiring the entire 34 percent stake held by Warburg Pincus in the Reiss Group, at a total cost of £128 million. The transaction is contingent upon customary conditions, including regulatory clearance, and is anticipated to conclude by mid-October 2023.

Following the completion of this acquisition, Next's ownership in Reiss will increase from 51 percent to 72 percent. Meanwhile, the Reiss family's stake will rise to 22 percent, and the Reiss management team will hold a 6 percent equity share. Consequently, Reiss's financial results will be consolidated into Next plc's accounts, as per a press release issued by Next.

Simon Wolfson, the CEO of Next, expressed his excitement about the deal, highlighting Reiss's impressive performance since their initial investment in March 2021. He looks forward to further developing the business alongside Christos and the Reiss team.

Adarsh Sarma, Managing Director, and Rianne Schipper, Principal, at Warburg Pincus, expressed pride in supporting Reiss's growth journey since 2016. They extended their gratitude to Christos, Jonathan, and the management team for their unwavering dedication, which consistently led to a category-leading performance.

Christos Angelides, CEO of Reiss, acknowledged the exceptional partnership with Warburg Pincus over the past seven years, emphasizing their vital role in sustained development and their status as a strong and trusted partner. He anticipates a continued focus on creating authentic and timeless collections for customers, with several new initiatives slated for launch in the coming months to broaden the scope and choice of collections worldwide.

This acquisition follows a period of robust growth for Reiss. Under the leadership of CEO Christos Angelides, the company reported total sales of £324.6 million in the year ending January 28, 2023, representing a 26.4 percent increase from the previous year.

Reiss will remain headquartered in London and retain its creative independence. Christos Angelides, who previously had a 28-year tenure at Next, will continue to serve as the CEO of Reiss.