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September 7, 2018updated 10 Sep 2018 6:52am

Naked Brand Group to buy US online women’s clothes retailer

Global apparel and swimwear retailer Naked Brand Group has signed a non-binding letter of intent with a US-based online retailer of women’s clothes for around $42.5m.

Global apparel and swimwear retailer Naked Brand Group has signed a non-binding letter of intent with a US-based online retailer of women’s clothes for around $42.5m.

The purchase price of the transition includes cash, stock and assumption of approximately $6.1m of the retailer’s debt.

Naked Brand Group’s CEO Justin Davis-Rice said: “We are continuing to make strides in our digital and e-commerce focused strategy that we believe will accelerate our growth trajectory and drive meaningful earnings before interest, tax, depreciation and amortization (EBITDA) contribution in the fiscal year (FY) ending 2019.

“The acquisition would augment our proprietary digital operating platform to create ongoing synergies that we believe will produce more than $70m in e-commerce revenues in the US for the FY ending 2019 and will be accretive to Naked shareholders over the long-term.”

“We are continuing to make strides in our digital and e-commerce focused strategy.”

With this transaction, Naked Brand will focus on expanding its direct-to-consumer product and brand mix.

On completion, the company expects e-commerce to represent approximately 43% of projected group revenues for the FY ending 2019.

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The company also expects the acquisition to increase its projected e-commerce revenues to more than $70m for the FY ending 2019 when combined with Naked’s existing Frederick’s of Hollywood e-commerce license revenue.

The proposed transaction is subject to terms negotiation and the execution of a definitive agreement relating to the proposed transaction and obtaining and satisfying all other necessary closing conditions.

Last month, Naked Brand signed a non-binding term sheet with European investment firm Sapinda Holding to receive $25m in strategic funding.