Acquisition of Lipsy Limited

RNS Number : 9454E

Next PLC

02 October 2008

 



Date:	Embargoed until 13.00hrs, Thursday 2 October 2008
Contacts:	Simon Wolfson, Chief Executive
	David Keens, Group Finance Director
	NEXT PLC
	Tel: [phone]
	Alistair Mackinnon-Musson
	Nathan Field
	Hudson Sandler
	Tel:      [phone]
	Email:    [e-mail]
Photographs:	Photographs available at:  http://www.next.co.uk/press/corporate.asp

NEXT PLC

Acquisition of Lipsy Limited

NEXT PLC ('Next') has acquired Lipsy Limited ('Lipsy') for an initial consideration of £17.4m in cash paid at completion.   The share capital was acquired for £14m and Loan Notes repaid of £3.4m. Lipsy was otherwise debt free at the date of acquisition. There will be further amounts payable in 2012, 2013 and 2014 dependent on the post tax profit performance of Lipsy for each of those years.

Lipsy is a well recognised wholesale brand in the young women's fashion market, with a turnover of approximately £20m in the year to June 2008. Next had revenues of £3,329m and profit before tax of £498m in the year to January 2008.

Lipsy distributes its products through a number of different retailers on the high street, in catalogues and on the internet.  Lipsy also sells direct through its own website and will open its first standalone store in Brent Cross, London, in November 2008.  

Following its acquisition by Next, there is no intention for Lipsy to cease supplying its products to existing customers, nor is there any intention to sell Lipsy products in Next stores.  Lipsy products already feature in the Next Directory and this will continue.

Lipsy's existing executive team, led by Jeremy Stakol as Managing Director, will continue to develop and run the business from their offices in London.  Next, which is based in Leicester, will provide the capital, expertise and infrastructure to accelerate the development of Lipsy into a leading brand in the younger women's fashion market.

Jeremy Stakol, CEO of Lipsy Limited said 'The prospect of working with one of the UK's leading fashion retailers to accelerate the development of Lipsy is exciting. Next's sourcing, supply chain, systems and logistics are among the best in the industry and we look forward to working with Next's experienced management team.'

Simon Wolfson, CEO of Next plc said 'We are delighted to welcome Lipsy to the Next group and look forward to helping develop their business in the years ahead.'

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