Myer Holdings Limited strategic acquisition update

Myer Holdings Limited (ASX: MYR) is set to acquire the Apparel Brands business from Premier Investments Limited. This move will result in Myer issuing 890.5 million new shares, making Premier the majority holder with 51.5% of Myer's shares. The acquisition is expected to complete by early 2025.

Strategic goals and future outlook for Myer and Premier

Myer Holdings Limited has announced the acquisition of Premier Investments' Apparel Brands, including Just Jeans, Jay Jays, Portmans, Dotti, and Jacqui E. This strategic move will make Premier the majority shareholder of Myer, although Premier plans to distribute its shares to its shareholders, ending its direct ownership. Premier will focus on expanding its Peter Alexander and Smiggle brands internationally while maintaining an investment in Breville Group Limited. Myer aims to enhance customer loyalty and operational scale by leveraging the acquired brands' capabilities. The transaction is subject to shareholder and regulatory approvals and is expected to be finalized in early 2025. This restructuring positions both companies for growth and increased competitiveness in the retail sector.

Executive insights on Myer Holdings acquisition

The combination aims to create a leading integrated fashion retailer across specialty and department store retail in Australia and New Zealand. Myer expects to achieve at least $30 million earnings p.a. from combination benefits on a run-rate basis over the short to medium term.