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Billionaire retail industry investor Brett Blundy has cashed in his major shareholding in Accent Group (ASX: AX1) for $165 million, selling the stake to the UK-based Frasers Group plc which owns a suite of premium fashion and sporting brands, including Everlast and Slazenger.
Accent, the owner of the Australia-New Zealand rights for fashion retail outlets and brands such as Timberland, Subtype, Nude Lucy, Sneaker Lab, Henleys and Article One, announced the strategic investment today after negotiating with Frasers Group “for some time in relation to a strategic relationship and other opportunities”.
The move marks an end to a seven-year association with Accent for Blundy, whose private investment group BBRC International Pte Ltd first acquired a 17.99 per cent interest in Accent in December 2017.
Accent has announced that Blundy will vacate his seat on the board “in due course” following the sale, and thanked him and BBRC International for their support over the past seven years.
“We have been talking to Frasers Group for some time about a strategic relationship and have been impressed by its management team and believe that there is a strong cultural alignment between both organisations,” says Accent Group CEO Daniel Agostinelli.
“We see the potential for significant mutual opportunity with Frasers Group and are excited by the beginning of this new relationship between the organisations.”
The investment by Frasers Group follows a lacklustre earnings performance by Accent Group in FY24, a period that saw a 33 per cent decline in net profit after tax to $59.5 million despite a 2.5 per cent lift in sales to $1.61 billion.
Michael Murray, CEO of Frasers Group, describes the investment in Accent Group as an “exciting step in the expansion of our international footprint, which is a key growth driver for the group”.
“Accent has built an incredible ecosystem of sports and lifestyle brands in Australia and New Zealand,” says Murray.
“We are looking forward to working with the Accent management team to unlock mutually beneficial opportunities for both groups.”
Frasers Group is one of the world’s largest owners and retailers of sports, premium and luxury brands, which also includes Sports Direct, House of Fraser, Flannels, and Gieves and Hawkes.
The London Stock Exchange-listed group delivered revenue of £5.5 billion ($10.7 billion) in FY24 and adjusted profit before tax of £544.8 million ($1.06 billion).
Blundy, whose investments in the past have included Bras N' Things which he sold for $500 million to US giant Hanes Brands in 2018, has offloaded his stake in Accent for $2 per share.
A substantial shareholder announcement to the ASX this morning reveals that BBRC sold the 82.477 million shares it owns in Accent for $164.95 million via an on-market block trade.
BBRC, an investment vehicle through which Blundy also has stakes in fashion retailers Dissh and Best & Less, also has a near 40 per cent stake in Lovisa, which Blundy established in 2010 in partnership with Shane Fallscheer.
Lovisa yesterday posted a 21 per cent increase in net earnings to $82.4 million, although the company’s share price took a big hit – with the downtrend continuing today.
Blundy’s sale to Fraser Group compares with a recent high of $2.44 for Accent Group shares last week ahead of the company’s profit announcement.
Accent shares were trading 2.5c higher at $2.055 at 12.26pm (AEST).
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