Myer Holdings merger announcement

Myer Holdings (ASX:MYR) has announced a transformational merger with Apparel Brands, including Just Jeans and Jay Jays. This strategic combination aims to create a leading retail platform in Australia and New Zealand, enhancing scalability and growth opportunities.

Merger details and future outlook

Myer Holdings (ASX:MYR) is set for a transformational merger with Apparel Brands to strengthen its retail platform across Australia and New Zealand. The merger will see Myer issue new shares to Premier Investments Limited and receive a cash contribution, resulting in Premier owning 51.5% of the combined entity. The strategic rationale includes leveraging growth opportunities, expanding the omni-channel platform, and improving operational efficiency. The merger is forecasted to deliver significant financial benefits, with completion expected in early 2025, pending shareholder and regulatory approvals. The combined entity will consist of over 780 stores and promises enhanced value for shareholders and customers.

Executive commentary on merger

The merger is expected to deliver at least $30 million in annual earnings benefits on a run-rate basis in the short to medium term, with significant earnings per share (EPS) accretion anticipated for the fiscal year 2024.