Myer has made a bid to buy five fashion brands from Premier Investments’ apparel division in exchange for $950m.
The retail giant is set to merge with Premier Investments’ clothing division, Apparel Brands, acquiring brands Just Jeans, JayJays, Portmans, Dotti and Jacqui-E and adding 780 stores to its rapidly expanding portfolio.
As part of the deal, Premier Investments will exchange its five brands for 890.5 million shares in Myer and a $82m cash payment; these shares will account for more than 51 per cent of the retail giant.
Premier Investments will retain two brands, Smiggle and Peter Alexander, as part of the deal.
‘This is an opportunity for our team and shareholders to play an important role in the future of the Australian and New Zealand retail landscape,’ Premier Investments chairman Solomon Lew said.
Myer has 56 department stores and combined with Premier Investments’ 719 stores, the retail giant will balloon past 780 stores across Australia and New Zealand and add a further 17,300 employees to its portfolio.
Speaking to investors on Tuesday morning, Myer executive chair Olivia Wirth said the merging of brands was set to be ‘transformational’ for the business.
‘If approved by shareholders, it will create a leading retail group with more than 780 stores across Australia and New Zealand, with a large and highly engaged customer base and capital to fund future investment and growth,’ Ms Wirth said.
‘Myer and Apparel Brands have highly complementary store footprints and customers who will benefit from an expanded omnichannel ecosystem that enables them to engage with the group’s loved brands when and how they want.’
Myer has made a bid to acquire five fashion brands from Premier Investments- Just Jeans, JayJays, Portmans, Dotti and Jacqui-E
Just Jeans is one of the five fashion brands set to be acquired by Myer from Premier Investments
Mr Lew has long been interested in Myer’s success.
As a teenager, Mr Lew supplied dresses to the Myer Emporium, later obtaining an almost 10 per cent stake in Myer Emporium Ltd by 1983.
By 1991, Mr Lew had claimed the seat as Coles Myer chairman but was removed in 2002.
Mr Lew began sharing his concerns with Myer’s management in 2017, openly criticising the then chair John King and often advocating for a shake-up of the board.
Mr King announced his retirement as executive chair in June 2023, stepping down from Myer in 2024.
Dotti looks set to be acquired by Myer in a $950m deal with Premier Investments
As part of the acquisition of Apparel Brands, Mr Lew will join the Myer board as a non-executive director, and Ms Wirth will remain as executive chair.
Myer shareholders will vote on the acquisition in late January, with the ink of the deal set to dry in early 2025.
