New Look Acquisition by Brait SE

New Look and Brait SE (“Brait”) announce that an agreement has been reached whereby Brait will acquire a c.90% interest in New Look Retail Group Limited (“New Look” or “the Company”) for c.£780 million, primarily from funds advised by Apax Partners and Permira (“the Acquisition”). The Singh family interests and the current management of the Company will acquire the remaining 10% of the Company. Anders Kristiansen, New Look’s CEO, Mike Iddon (CFO) and Roger Wightman (CCO) will remain with the Company. The transaction places an Enterprise Value on New Look of c.£1.9 billion.

Over the past 11 years, under the Apax and Permira Funds’ ownership, New Look has gone through a significant transformation and is now the leading fast fashion retailer in the UK for the under 35s with more than 800 stores worldwide. New Look is attractive to Brait for the following reasons:

• Double digit EBITDA growth in recent years
• Solid cash flow generation
• Established UK footprint in the higher growth value segment of the apparel and accessories market
• Leading UK market value share; No. 2 overall womenswear and No. 1 in under-25s womenswear

• Strong growth prospects in France, Germany, Poland and especially China which is a priority market
• Strong brand awareness in particular amongst women in the UK
• Well-developed multi-channel offering via traditional stores and a fast growing e-commerce platform incorporating ‘click and collect’ options
• Well-invested infrastructure and systems including a state-of-the-art distribution centre
• The scale and efficiency of New Look’s fast fashion operating model from source to customer (via shop-floor or e-commerce) is difficult to replicate
• Partnering with an experienced, aligned and proven management team, and with the founder of the business.

New Look has net financial debt of c.£1 billion. Brait and New Look’s management are comfortable with the company’s current leverage ratio given its strong cash flow generation. Subject to market conditions, the Company will review financing alternatives in order to optimise the capital structure within the same leverage range.

Brait will fund the Purchase Consideration using available facilities and cash on hand. Commenting on this transaction, Anders Kristiansen, CEO of New Look said: “We are delighted to have announced this transaction. Brait have a track record of long-term and supportive investments – they give us the perfect platform to continue our strategy of growing the New Look brand in the UK, Europe and China. I’d like to take this opportunity to thank our existing shareholders for their support over the years, and I am looking forward to working with Brait in the future”.

John Gnodde, CEO of Brait added: “New Look is an attractive investment opportunity for Brait – it is a market leading brand, with a strong track record of double digit EBITDA growth, solid Cashflow conversion, international reach, and the potential to grow rapidly in a number of geographic markets including China. We have been highly impressed with the management team and look forward to partnering with them”. New Look was advised by Goldman Sachs International, JP Morgan Cazenove, Clifford Chance and Price Waterhouse Cooper on this transaction.