Myer Drives Forward on Major Acquisition Despite Sales Slump
Deal News | Dec 10, 2024 | EIN
Myer, an established Australian department store chain, is pressing ahead with a significant acquisition deal despite experiencing a downturn in sales. The company announced plans to merge with the owner of multiple retail brands including Jay Jays, Dotti, and Just Jeans, which will expand its reach by acquiring 719 stores across Australia and New Zealand. Scheduled for completion in early 2025, pending shareholder approval in January, the transaction will see the current owner of these brands receiving 890.5 million new Myer shares. During its annual general meeting in Melbourne, Myer Executive Chair Olivia Wirth addressed the sales decline attributable to challenging economic conditions and the closure of several key stores. Myer plans to strategically invest in enhancing its store operations to counteract economic pressures.
Sectors
- Retail
- Mergers and Acquisitions
- Finance
Geography
- Australia – The primary geography involved is Australia, where Myer is based and where the major acquisition is taking place across various retail locations in the country.
- New Zealand – New Zealand is included as part of the geographical scope of the acquisition, highlighting the expansion of Myer's retail operations to 719 stores across both countries.
Industry
- Retail – The primary industry involved is Retail as the article discusses the activities of Myer, a department store chain, and its impending acquisition of additional retail stores and brands.
- Mergers and Acquisitions – This is relevant because the article details a significant acquisition deal in which Myer aims to expand its retail footprint by merging with the owner of several fashion brands.
- Finance – The Finance industry is pertinent as the article discusses financial strategies, including shareholder votes and share issuance as part of the acquisition deal.
Financials
- 890.5 million – The value in new Myer shares that will be issued to the previous owner of the acquired brands as part of the acquisition deal.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Myer | Buyer | Company | Myer is a prominent Australian department store chain pursuing a major acquisition to expand its retail operations. |
| Olivia Wirth | Executive Chair and Director | Person | Olivia Wirth is the Executive Chair and Director of Myer who addressed the sales challenges and future strategic plans at the company's AGM. |
| Jay Jays, Dotti, Jacqui E, Just Jeans, Portmans | Target Companies | Companies | These brands are part of the acquisition deal, with their stores being acquired by Myer from their current owner. |