Mike Ashley’s Frasers Group has made a €1.98bn (£1.73bn) takeover offer for the rest of German fashion brand Hugo Boss, the retail conglomerate confirmed on Wednesday.
Frasers, which already owns just over a quarter of the company after steadily building its stake since 2020, said it wanted to buy the remaining shares. The move was triggered by German law: because Frasers’ ownership is now close to the 30% threshold, it is required to make an offer for the entire business.
“Frasers Group offers €1.98bn to buy all of Hugo Boss, already owning over a quarter.”
Hugo Boss responded by saying it would “thoroughly examine the offer and issue a reasoned statement”, describing the bid as unsolicited and “not been coordinated with the company”.
The offer values Hugo Boss at €38 a share, higher than the €36.5 closing price on Wednesday. Frasers said it expected the takeover to be completed by the end of the year, subject to legal checks.
Frasers, formerly Sports Direct, owns House of Fraser, Game, Jack Wills and Evans Cycles. It has built a reputation for swooping on distressed retailers, but Hugo Boss – which has been consistently profitable – represents a different strategy. The group said it had “a strong track record in making strategic investments” and was “a long-term investor” in the German brand, remaining “supportive” of its chair and chief executive.
The same cannot be said for its relationship with Boohoo, in which Frasers is the largest shareholder. Last year, Frasers used its voting power to block Boohoo’s attempt to formally rename itself Debenhams. Boohoo’s chief executive, Dan Finley, told the BBC this week that the company would “operate to all intents and purposes as Debenhams Group”, adding: “It’s just the formal change to the name that’s listed at Companies House… required a special resolution that didn’t pass.”
Mike Ashley, the controversial founder of Frasers who remains its largest shareholder, has a history of blunt tactics. He has called unhappy investors “cry babies”, faced criticism over working conditions in Sports Direct factories, and once vomited into a fireplace. His son-in-law now runs the group.
Hugo Boss said it would “inform its shareholders and the public about further developments and next steps”. The question now is whether the German fashion house will accept the unsolicited offer – or push back against Ashley’s latest retail power play.