Mike Ashley's retail conglomerate, Frasers Group, has launched a near €2 billion takeover bid for the German luxury fashion brand Hugo Boss. The fashion and sportswear group, which currently holds a 26% stake in Hugo Boss, is offering approximately €1.98 billion (£1.73 billion) to acquire the remaining shares and take full control of the company.
Offer Details
Under the proposed deal, Frasers—which also owns Sports Direct—will pay €38 per share to Hugo Boss investors. This represents a slight premium over the closing price of €36.44 on Wednesday. The offer is expected to be put to a shareholder vote in due course.
Background
The move follows years of speculation that Frasers might pursue a full takeover of the brand. Since first investing in Hugo Boss in 2020, the group has steadily increased its stake. Frasers CEO Michael Murray, who took over day-to-day operations from Ashley in 2022, sits on Hugo Boss's supervisory board as a result of the shareholding. However, Frasers stated that Murray did not participate in the board's discussion or decision to make the offer.
Financial Impact
Late last year, Frasers reported that its bottom line was boosted by a significant increase in the value of its investment in Hugo Boss, which was founded in 1924 and is listed on the Frankfurt stock exchange. The UK retail company, with a current market value of £3.45 billion, aims to complete the deal in the second half of this year, subject to shareholder and regulatory approvals.
Strategic Fit
If successful, the acquisition would add Hugo Boss to Frasers' portfolio, which already includes Frasers department stores (formerly House of Fraser), the fashion chain Flannels, and bicycle retailer Evans Cycles. In a statement, Frasers said: "Hugo Boss is a key brand partner for Frasers, and one of the top five brands across the Frasers Group. Frasers is a long-term investor in Hugo Boss and remains supportive of both Stephan Sturm, the chair of the supervisory board, and Daniel Grieder, chief executive, in pursuit of their sustainable growth strategy while continuing to build brand equity. Frasers' board of directors believes that increasing Frasers' investment in Hugo Boss will create value for Frasers' shareholders."
Mike Ashley's Journey
Mike Ashley, who retains a 73% stake in the group he built from a single sports store in Maidenhead opened in 1982 with £10,000 from his parents, has seen his wealth grow significantly. According to the Sunday Times Rich List released last month, his net worth increased by £317 million to £3.44 billion last year. Ashley left school at 16 with no qualifications to become a professional squash player, but an injury ended that career path.
