Online fashion retailer ASOS has acquired the Topshop, Topman, Miss Selfridge and HIIT brands from the Arcadia Group for £265 million, approximately $411 million USD.
“The acquisition of these iconic British brands is a hugely exciting moment for ASOS and our customers and will help accelerate our multi-brand platform strategy,” said ASOS CEO Nick Beighton in a statement. “We have been central to driving their recent growth online and, under our ownership, we will develop them further, using our design, marketing, technology and logistics expertise, and working closely with key strategic retail partners in the UK and around the world.”
ASOS plans to integrate the brands quickly using existing warehouse and technology infrastructure. In addition, it will transition 300 employees across design, buying and retail partnerships to the company. As part of the integration process, ASOS also will review the supply chain to ensure it complies with the company’s “Fashion with Integrity” principles. The acquired brands will join its Venture Brands portfolio alongside others such as Collusion, AsYou and Reclaimed Vintage. ASOS will retain their established brand and customer positioning, which is differentiated from its core ASOS Design and other ASOS Brands.
The acquisition represents a strategic opportunity in support of ASOS’ mission to become the “No. 1 destination for fashion-loving 20-somethings worldwide,” the company said. “These are strong brands that resonate well with our core customer base. Brand equity is strongest in the UK and they have an established presence in both the U.S. and Germany, two of our key strategic markets.”
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ASOS also sees a significant opportunity to drive further growth for these acquired brands globally. “Our international warehouse infrastructure and localized online experiences will support continued growth through our own platform,” according to the ASOS release. “In addition to this, there is significant scope for selective development of strategic retail partnerships. We see particular opportunity to increase the brands’ reach and accelerate our U.S. strategy via partnership with Nordstrom in this key market.”
