Frasers Group PLC (LSE:FRAS) has taken a hefty stake in, and agreed a strategic partnership with, online electricals retailer, AO World PLC (LSE:AO.).
Frasers, owned by Mike Ashley and run by his son-in-law Michael Murray, paid £75mln for an 18.9% stake in AO which it said it had long admired.
AO said the “investment is the culmination of productive talks over the last two years about establishing a strategic partnership.”
In a statement, John Roberts, founder and CEO of AO said: "This is great news for AO and a fantastic endorsement for our business.”
Michael Murray CEO of Frasers Group added: "Frasers has long admired what John and the AO team have built, and we are delighted to have the opportunity to form a supportive, strategic partnership.
“AO is a fantastic business with a clear strategy which is leading the market in online-only electricals.”
He said Frasers would benefit from AO's valuable know-how in electricals and two-man delivery to help drive growth in its bulk equipment and homeware ranges.
It is the latest expansion of Ashley’s empire, after investments in Asos and Hugo Boss.