Frasers Group acquires 18.9% stake in AO World
Frasers Group has invested £75 million in acquiring an 18.9% stake in online appliance and electricals retailer AO World.
The owner of Sports Direct, House of Fraser and Flannels said its has purchased 109,400,000 issued shares at a price of 68p per share.
The move follows “productive” talks between the two companies over the last two years.
Frasers Group chief executive Michael Murray said Frasers will benefit from AO’s know-how in electricals and two-man delivery, which will help drive growth in Frasers’ bulk equipment and homeware ranges.
He said: “Frasers has long admired what John and the AO team have built, and we are delighted to have the opportunity to form a supportive, strategic partnership. AO is a fantastic business with a clear strategy which is leading the market in online-only electricals.”
Frasers Group is understood to have acquired the stake from Odey Asset Management. Its founder Crispin Odey has recently departed the business following sexual misconduct allegations, which he denies.
John Roberts, founder and chief executive of AO, said: “We are delighted to welcome Michael and the wider Frasers team into the AO family and look forward to realising the significant potential that we see for this partnership.
“As we continue to build on our strategy of pivoting to profitable growth, it will be hugely exciting to have a range of compelling strategic opportunities to explore together and we’re very much looking forward to working with Michael and his team.”
