UK Retailer Next Ups Stake in Reiss as Warburg Pincus Exits

Fall fashions are displayed at a JCPenney store in Frisco, Texas, Wednesday, Aug. 30, 2023. (AP Photo/LM Otero)

Britain's Next agreed a deal to raise its stake in upmarket fashion chain Reiss Group to 72% from 51%, after the retailer teamed up with the Reiss family to buy Warburg Pincus's shares for 128 million pounds ($162 million).
Next, one of the UK's biggest clothing chains, has added a number of well-known brands to its stable in recent years, including parts of retailers such as Cath Kidston, Joules and Made.com.
Following the latest deal, the Reiss family's holding will rise to 22% and the management team will hold 6%.
Next said on Friday that Reiss had performed "exceptionally well" since it first invested in March 2021 and as such it decided to snap up the stake being sold by private equity firm Warburg Pincus.
In the 12 months to the end of January, Reiss's sales rose 26% year-over-year to 325 million pounds, while pre-tax profit was 51% higher at 52 million pounds.
Reiss's online operations are contracted to Next through its Total Platform business, which also provides warehousing and distribution services to Reiss, helping drive Reiss's growth overseas.
The deal is subject to regulatory approvals, Next said.