Myer Holdings Limited(MYR) announced that it will acquire a 65 percent stake in sass & bide(“sass & bide”), one of Australia's most respected and successful women's fashion brands, for $42.25 million.
Myer will have exclusive department store rights to distribute this iconic, designer brand, as well as benefiting from the expansion of both sass & bide's standalone store network, and its domestic and international wholesale businesses. It is planned that sass & bide will be launched in approximately 30 Myer stores over the next 18 months.
Myer Chief Executive Officer, Bernie Brookes, said Myer's investment in sass & bide represents an excellent addition to Myer's brand portfolio, delivering a highly profitable business with significant growth potential.
“The investment in sass & bide is entirely consistent with our strategy for growth which is about opening new stores, investing in store refurbishments and refreshments, growing and leveraging MYER one and introducing new product categories, brands, concepts and concessions,” said Mr Brookes.
“Sass & bide's highly experienced and successful management team will continue to drive the success of the business and will also provide us with valuable insights and exposure to specialty retail,” he said.
Sass & bide has grown significantly since it was founded in 1999, by two of Australia's most successful and recognisable fashion designers Sarah-Jane Clarke ('Sass') and Heidi Middleton('Bide'). The business generated sales of around $37 million in FY2010, delivering annual sales growth of over 50 percent over the past two years, an outstanding result in a difficult retail environment.
Sass & bide currently has 15 standalone retail concept stores across Australia and New Zealand. In addition it has wholesale arrangements in boutiques and department stores across Australia, New Zealand, US, UK, Asia and the Middle East. Sass & bide plans to open further retail stores over the next 18 months in Australia and New Zealand, as well as expand its international distribution.
Sass & bide founders and management support joint ownership with Myer Sass & bide co-founder, Sarah-Jane Clarke, said teaming up with Myer would take sass & bide to the next level. “We are very excited to be partnering with Myer, an iconic Australian brand. This partnership will help Heidi and I realise the dream we had for sass & bide 12 years ago when we were selling our jeans at Portobello market in London,” said Ms Clarke.
Sass & bide co-founder, Heidi Middleton, said she was looking forward to being part of the new world-class Myer Melbourne store. “Myer has committed to significant floor space across its stores which will ensure we offer a great range. We can also see great opportunities for our business to continue to expand overseas by working together to open standalone stores and sharing in Myer's sourcing, networks and supply chain,” said Ms Middleton.
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