Billionaire Solomon Lew’s Premier Investments is merging its apparel brands with department store chain Myer Holdings, cementing their dominance in Australian retail.
Shoppers and pedestrians walk past a Myer Holdings Ltd. department store at Pitt Street Mall in Sydney, Australia.
© 2020 Bloomberg Finance LP
Under the deal valued at A$864 million, Premier will inject apparel brands such as Just Jeans and Dotti, Jay Jays, Portmans and Jacqui E into the 125-year Myer in exchange for new Myer shares.
Upon completion of the transaction, which was approved by shareholders of both companies on Thursday, Lew’s privately held Century Plaza Investments will become Myer’s largest shareholder with a stake of about 27%. Premier will also inject A$82 million in cash into the retailer.
“The combination will transform the Myer Group, creating a more resilient business with diversified earnings,” Olivia Wirth, executive chair of Myer, said in a statement. The merger will expand the group’s footprint across 780 stores in Australia and New Zealand.
With a net worth of US$2.3 billion, Lew is the chairman of Premier Investments, which owns brands such as the Smiggle children stationery store franchise and sleepwear label Peter Alexander. Premier is the largest shareholder of home appliance maker Breville.
This article was originally published on forbes.com.
Look back on the week that was with hand-picked articles from Australia and around the world. Sign up to the Forbes Australia newsletter here or become a member here.
