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Accent Group (ASX:AX1) completes Glue Store acquisition

Consumer Discretionary
ASX:AX1      MCAP $1.055B
31 May 2021 16:40 (AEST)
Accent Group (ASX:AX1) - CEO, Daniel Agostinelli

Source: Australian Surf Business

Accent Group (AX1) has successfully completed the acquisition of youth apparel retailer Glue Store and distribution business Next Athleisure.

The footwear distributor and retailer first announced its intention to acquire the businesses in April, stating it would pay the $13 million through its existing finances.

Accent Group has now acquired all of Next Athleisure’s brands which include Nude Lucy, Article One, Lulu & Rose and Beyond Her.

Furthermore, based on discussions with the owners of its global brands, AX1 expects to also acquire Kappa, Sebago, Superga, le coq sportive and K-Way.

The Next Athleisure business will become a new division of Accent Group and will be named Accent Lifestyle and be run by Darren Todd as Group General Manager.

“The strong strategic alignment between the Accent and Next Athleisure business provides us with a significant opportunity to accelerate our growing apparel business,” CEO Daniel Agostinelli said.

“Our strategy and plans are already well progressed to increase Glue Store’s store network over time, accelerate its digital and virtual offerings, grow its owned vertical brands and significantly increase the range of footwear in its stores,” he added.

Accent Group has ended the day 2.21 per cent in the green with shares trading at $2.78 in a $1.47 billion market cap.

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