Premier Investments (ASX:PMV) and Myer Holdings (ASX:MYR) are merging resources in a transformative deal, announced today. Myer will acquire Premier’s Apparel Brands, including Just Jeans, Jay Jays, Portmans, Dotti, and Jacqui E, through the issue of 890.5 million shares to Premier, giving Premier a 51.5% stake in Myer and establishing the company as Myer’s majority shareholder.
This partnership brings advantages to both sides. Myer gains Apparel Brands’ established retail network and expertise in sourcing, design, and distribution, strengthening its operational base across Australia and New Zealand. Myer anticipates achieving scale efficiencies that could generate at least $30m annually in additional earnings. The merger also brings Apparel Brands’ customer base under Myer’s umbrella, enhancing Myer’s omni-channel ecosystem and loyalty program reach.
For Premier, the merger means influence over Myer’s operations, and continued growth potential through a newly enlarged Myer shareholding. As part of the arrangement, Premier Chairman Solomon Lew will join Myer’s board as a Non-Executive Director, providing strategic oversight and direction.
Premier will focus its own operations on developing its high-growth brands Peter Alexander and Smiggle, while still benefiting from Myer’s performance through its new stake.
Premier shareholders will also receive shares in Myer directly, with each eligible Premier shareholder receiving approximately 7.2 Myer shares per Premier share. Following the distribution, Lew’s private investment group, Century Plaza, will will have an estimated 26.8% stake in Myer.
“This is an opportunity for our team and our shareholders to play an important role in the future of the Australian and New Zealand retail landscape,” said Lew. “Myer and our Apparel Brands will be stronger together – delivering vertical integration, scale, additional margins, and loyalty opportunities.”
The deal is expected to conclude in early 2025.