Next Plc nabs JoJo Maman Bebe with investment firms

As part of the acquisition, the terms of which were not disclosed, Next took a 44% stake in JoJo Maman Bebe (JoJo), with the financial companies taking the remaining 56%.

The shares were acquired from existing JoJo shareholders, including founder Laura Tenison who will leave the company as part of the transaction. Gwynn Milligan, who joined JoJo in 2017 as chief commercial officer, took over the role of CEO. The other directors of JoJo will remain in their positions.

No immediate layoffs are expected.

Next will make a capital investment of £16.3m (US$21.3m) funded by its own cash. The company says an important aspect of the investment is that JoJo will retain her managerial autonomy and creative independence, and benefit from her collective experience and that of Davidson Kempner to continue its successful growth.

JoJo will continue to trade through the following channels, supported by a move to Next’s total platform in mid-2023 via a commission-based total platform agreement.

The intention is that Next’s infrastructure – its online systems, warehousing, distribution assets and supply base – can serve as a catalyst for JoJo’s continued growth and profitability, both in the UK and ‘abroad.

Next Plc CEO Simon Wolfson said: “Next is delighted to have its total platform supporting JoJo in the next stage of its growth and development. We are excited to see what can be achieved through the combination of JoJo’s exceptional product with the infrastructure of Next and Davidson Kempner as an investment partner.

After taking into account integration and acquisition costs, the investment should not have a significant impact on Next Group’s profits in the current financial year, but should make a positive contribution thereafter. .

An established online business and a diverse product offering paid off for Next Plc last month as the retailer reported an increase in profits and full-year sales – but the group is cautious in its outlook for 2022.

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