Australian department store chain Myer has received shareholders’ consent to merge Premier Investments’ apparel brands into its portfolio in a deal valued at A$864m ($541.99m).
The share sale and implementation agreement was formed in October 2024.
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During voting on 23 January 2024, Myer shareholders showed resounding support, with 96% in favour of the merger. Premier Investments’ shareholders demonstrated an even stronger consensus, with above 99% approval.
The unification will result in Myer acquiring Premier’s array of denim, womenswear and casual apparel labels such as Just Jeans, Dotti, Jay Jays, Portmans and Jacqui E.
Myer’s retail presence will exceed 780 outlets throughout Australia and New Zealand.
Premier Investments currently holds a substantial 31% share in Myer.
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By GlobalDataFollowing the merger, Solomon Lew, principal investor in Premier Investments, will become the largest shareholder in Myer with a 27% stake.
Myer executive chair Olivia Wirth stated: “We are delighted with the strong backing from Myer shareholders for the combination with Apparel Brands. Our shareholders have demonstrated their overwhelming support for the combination with Apparel Brands and our strategy to create a leading retail platform across Australia and New Zealand.
“Subject to the approval of shareholders […] the combination will transform the Myer Group, creating a more resilient business with diversified earnings. I’m excited about the potential opportunities that open up for the business and our customers, team members and shareholders.”
The merger presents a compelling proposition for Myer investors due to several key factors. The combination establishes a prominent omnichannel retail entity in Australia, showing considerable growth and operational efficiency prospects through increased scale.
It integrates Apparel Brands’ customer demographic with Myer’s loyalty scheme, MYER one, fostering opportunities for cross-shopping and potential sales expansion within the merged entity.
The combined capabilities in product innovation, design, procurement and distribution are anticipated to yield enhanced profit margins for the unified group.
Projections indicate that the merger could result in annual pre-tax earnings improvements of a minimum of A$30m over the short to medium term, with significant earnings per share enhancement expected in the pro forma financial year 2024.
The financial position is set to strengthen post-merger, providing an augmented capacity for investment in the collective group’s growth initiatives.
Myer’s shareholder base will grow and diversify following Premier’s In Specie Distribution, leading to improved liquidity in share trading and better access to capital markets.
