UK-based online luxury retailer END Clothing has agreed to divest a majority stake to global investment firm Carlyle Group.
Carlyle will acquire the stake from END founders and CEOs Christiaan Ashworth and John Parker, who will become minority stake holders.
Venture capital firm Index Ventures, which currently holds a minority stake in END, will fully exit from the company after the acquisition.
The financial details of the transaction have not been disclosed, but insiders have said Carlyle’s purchase values END at more than £750m ($1bn).
The transaction is due to close on 1 April.
Ashworth and Parker said: “We are thrilled to welcome Carlyle as our new partner. Their experience and strong track record in luxury and streetwear will be invaluable to us in supporting END’s long-term and sustainable growth strategy.
“Carlyle’s industry knowledge and truly global platform will be instrumental as END continues to reach an increasingly international audience. We’d also like to thank Index Ventures for being a fantastic partner and great to work with over the last seven years.”
Carlyle Europe Partners Consumer and Retail managing director Massimiliano Caraffa said: “We are attracted to END’s distinctive style, which mixes luxury and contemporary brands with the best in sneakers and sportswear.
“We are excited by the many growth opportunities that lie ahead for the company, including the launch of womenswear as well as further international expansion.”
Following the deal, Ashworth and Parker will continue to serve as CEOs of the company.
Carlyle Group has committed to supporting END’s expansion both within the UK market and internationally.
END is a global multi-brand, digital-led retailer that offers luxury and contemporary fashion, sneakers and streetwear. It currently employs more than 650 people in the UK and delivers to more than 100 countries.
The company generated revenues of £170m in the year ending last March, with 65% of this coming from outside the UK.