Online fashion retailer Boohoo has acquired PrettyLittleThing. The company already owned 66 percent of PrettyLittleThing’s shares, but now Boohoo also owns the remaining 34 percent of shares. These shares come from Umar Kamani, the son of Boohoo co-founder Mahmud Kamani, and business partner Paul Papworth.
With the acquisition, Boohoo says it’s taking an important step towards its vision to “lead the fashion ecommerce market globally”. The British fashion group described its latest acquisition as a brand that’s in high growth “with enormous growth potential ahead of it”.
PrettyLittleThing has enormous growth potential.
Growing platform of wholly owned fashion brands
“After this acquisition and with our growing platform of wholly owned fashion brands, we believe we can continue to successfully disrupt the international markets we operate in today”, Boohoo announced in a press release.
‘Boohoo overstated its free cash flow’
Earlier this week, activist investor ShadowFall published a 53-page report in which he alleged that Boohoo had overstated its free cash flow by 65 percent. The UK fashion company strongly refuted the allegations.
CAGR of 111%
Boohoo acquired a 66 percent stake in ‘PLT’ in 2017, which then developed with increasing success. It generated about 575 million euros of net sales in the year ending 29 February 2020. That’s a compound annual growth rate of 111 percent compared to the year ending 28 February 2017.