ASOS and Heartland Form Joint Venture for Topshop
ASOS and Heartland Form Joint Venture for Topshop

ASOS and Heartland Form Joint Venture for Topshop

News summary

Asos has agreed to sell a 75% stake in its Topshop and Topman brands to Danish firm Heartland, the investment vehicle of billionaire Anders Holch Povlsen, for £135 million, valuing the brands at £180 million. Heartland, which also owns Bestseller, will form a joint venture with Asos, which retains a 25% stake and will continue to sell Topshop and Topman items online but will pay royalties impacting profits by £10-20 million annually. The deal is expected to generate net proceeds of about £118 million for Asos, and shares have risen sharply in response. This move is part of a strategy to bolster Asos's balance sheet and achieve sustainable, profitable growth amidst financial struggles, including a £120 million loss for the half-year. The transaction is expected to finalize in Q4 2024, pending regulatory approvals, and will coincide with the relaunch of the Topshop website within six months of the deal's closure.

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