Next PLC (LSE:NXT) has confirmed it has bought most of FatFace for £115.2 million from a consortium of financial institutions.
The Leicester-based retailer said the deal would be settled partly in cash and partly by the issue of new Next shares and management equity rolling over into the new structure.
It said the deal will not materially impact underlying profit before tax or EPS in the current year.
Upon completion, which is expected to take place within the next few weeks, Next will hold 97% of the equity and FatFace's management will hold 3% in the business.
Management will also participate in an additional performance-related equity scheme.
FatFace will retain its management autonomy and creative independence and retain its own board of directors.
It is expected that FatFace will migrate its online operations onto Next's Total Platform within the next 12 months.
It is anticipated that FatFace will continue to trade and develop its own retail store portfolio while Will Crumbie, who became CEO in 2021, will continue to lead the business.