Myer acquires well-known Australian stores in a major transaction worth $950 million.

Myer, the well-known department store chain, has recently announced a major acquisition of the company behind some of the most popular clothing brands in Australia. The deal, valued at almost $950 million, will see Myer taking over Premier Investment's clothing division, Apparel Brands, which is owned by the billionaire businessman Solomon Lew.

The agreement involves Myer purchasing the retailers, including Jay Jays, Dotti, Portmans, and Just Jeans, in exchange for 890 million new shares worth $863.78 million. Additionally, $82 million in cash will also be included in the deal. Pending approval from shareholders, this acquisition will give Myer ownership over nearly 800 retail stores across Australia and New Zealand. Currently, Apparel Brands has 700 stores, while Myer operates 64 retailers, including sass & bide stores, Marcs, and David Lawrence. In total, the combined group will employ 17,300 people.

The Apparel Brands clothing division, which comprises of Jay Jays, Dotti, Portmans, Just Jeans, and Jacqui E, generated a revenue of $791 million in 2024. Premier Investments, however, will retain ownership over its other popular retail brands, Peter Alexander and Smiggle. As part of the deal, Lew, who was once the chairman of the former Coles Myer giant, will join the board of Myer as a non-executive director.

In a statement to the market, Lew expressed his excitement about the potential of this acquisition. He said, "This is an opportunity for our team and our shareholders to play an important role in the future of the Australian and New Zealand retail landscape. Myer and our Apparel Brands will be stronger together, delivering vertical integration, scale, additional margins, and loyalty opportunities." He also added that Premier's board will now be focused on the growth and performance of Smiggle and Peter Alexander, including pursuing local and international growth opportunities.

This deal marks Lew's return to the 125-year-old Myer brand, where he once served as the chairman of the former Coles Myer giant. The acquisition is expected to be completed in early 2025, and both companies are looking forward to the future growth and success that this partnership will bring.

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