Boohoo snaps up PrettyLittleThing fashion brand
Online retailer Boohoo.com has snapped up a two-thirds stake in women’s fashion brand PrettyLittleThing for £3.3m, a company founded by the son of its owner Mahmud Kamani.
Boohoo announced the acquisition of the “forward-thinking fashion brand” as it upgraded its full-year revenue guidance in an update on Wednesday.
Boohoo will take a 66 per cent stake in PLT, which reported gross sales of £17m this year and boasts celebrity fans such as Lindsay Lohan.
The company said it would have the option to buy out the remaining 34 per cent from 2022 – the end of PLT’s current five year management plan.
The acquisition “will be used to incentivise chief executive Umar Kamani and PLT’s senior management who have overseen exceptional revenue growth since 2014″, said Boohoo.
Boohoo also hiked its full-year revenue guidance again to between 38 per cent and 42 per cent in 2017, up from a previous upgrade of 30-35 per cent it stated in August on the back of strong Black Friday sales.
Chairman Peter Williams, said:
"PrettyLittleThing was always going to be a natural fit with boohoo. Umar and his team are to be congratulated for creating a fantastic brand, which complements boohoo’s own inclusive and innovative brand, and we are delighted to add this fast growing, international business to the Group. We believe this is an excellent opportunity to extend the Group’s overall customer appeal through two distinct, complementary brands while further enhancing the Group’s strong growth trajectory. We look forward to building on PrettyLittleThing’s success and we welcome Umar and his team to the Group."