Myer To Acquire Premier Investments' Apparel Brands In AU$950M Deal

In a mega deal, department store giant Myer has reached an agreement worth nearly AU$950 million to acquire Apparel Brands, the clothing division of Premier Investments, which includes Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E, owned by billionaire Solomon Lew.

Myer will acquire the retailers by issuing 890 million new shares valued at AU$863.78 million, which was over 51% of the company, ABC reported.

The deal requires the approval of shareholders and regulators, and once the transaction is finalized, Lew, the chairman of Premier Investments, will join Myer's board as the non-executive director.

The combined group will operate over 780 stores across Australia and New Zealand, employing around 17,300 people. Meanwhile, Premier Investments will maintain ownership of its stationery and sleepwear labels Smiggle and Peter Alexander, respectively.

While Premier owns more than 700 clothing stores, Myer runs 64, including sass & bide, Marcs and David Lawrence.

Myer CEO Olivia Wirth described the acquisition as a "transformational" move for the department store chain. She highlighted that the merger aimed to establish a "robust, omnichannel retail entity" with a dedicated customer base, specifically promoting the retailers' "Myer One" program.

According to Wirth, Myer directors had unanimously recommended that shareholders approve the merger, which is expected to be finalized next year.

Sam Koch from Wilson Asset Management, which holds 5% of Myer stock, told ABC's The Business they would approve the merger.

"This is an opportunity for our team and our shareholders to play an important role in the future of the Australian and New Zealand retail landscape," Lew said in a statement. "Myer and our Apparel Brands will be stronger together – delivering vertical integration, scale, additional margins and loyalty opportunities."

However, veteran retail consultant Geoff Dart noted that it could be a disastrous bargain for Myer.

"Both [companies] are diametrically opposed demographically, trying to cater for 13-year-olds to 80-year-olds is problematic. It's going to be a real struggle, it honestly is. It's not a healthy environment for retail, generally," Dart said.

Meanwhile, Lew stated that Premier was still considering a demerger of Peter Alexander and was looking to grow the brand globally.

"I won't call out the US at this point in time but ... yes, confirming that we will expand the Peter Alexander Northern Hemisphere opportunities, both with finding the right partners or investing directly ourselves," Lew said.

In 2024, Apparel Brands reported a revenue of AU$791 million.