Boohoo Group has fully acquired UK fashion retailer PrettyLittleThing (PLT) for an initial consideration of £269.8m after purchasing the remaining 34% shares from minority shareholders.
The initial consideration has the potential to increase to £323.8m if PLT sees its share prices averaging £4.91 per share between the date of completion and 14 March 2024.
This follows accusations made on Tuesday by London-based hedge fund Shadowfall, who said Boohoo had overstated cash flow by £32m and was treating cash generated by PLT as though it fully owned the business.
According to Boohoo, the remaining 34% stake would help it to continue to “successfully disrupt the international markets” it operates in. The acquisition also means that Boohoo would be able to retain a strong balance sheet so that future mergers and acquisition opportunities would become available to the company.
Boohoo CEO John Lyttle said: “PLT has delivered strong growth as part of the Boohoo Group’s platform, and has a great future ahead of it in the UK and overseas.”
PLT CEO and founder Umar Kamani said: “This deal represents another milestone in our journey at PLT. Since being a disruptive start-up in 2012 to a global fashion brand that generates over half a billion pounds in sales today, I am incredibly proud of what my team and I have achieved in such a short period of time.”
Kamani and PLT chief operating officer Paul Papworth will remain in their roles.
By Jessica Paige SHARE