Alhokair And Arabian Centres To Acquire 51% Stake In Online Fashion Retailer, Vogacloset, Redefining Saudi Shopping Experience
- Combined brands and resources will create an unmatched omnichannel for consumers and merchants
- Integration to build on Vogacloset's strong regional e-commerce footprint, with 12 million active users across the Middle East
- Bringing three key regional players together to create a retail infrastructure with exceptional growth potential and an unparalleled collection of brands
RIYADH, Saudi Arabia and LONDON, March 3, 2021 /PRNewswire/ -- Fawaz Abdulaziz Alhokair Co. ("Alhokair"), the leading franchise retailer in Saudi Arabia, and Arabian Centres Company ("ACC"), the leading owner, developer and operator of lifestyle shopping centres in Saudi Arabia, (together "the buyers") have announced that they will acquire a combined 51% stake in Vogacloset, a UK-based online fast fashion platform offering over 400 brands in the latest women's, men's and kids' trends to fashion enthusiasts in the Middle East.
The buyers will acquire 41.2% of Vogacloset's existing shares based on a pre-money valuation of USD 60 million, subject to an earn-out structure conditional on certain growth thresholds. In addition, USD 12 million will be injected into the capital of Vogacloset to further develop its presence in the Saudi market, accelerate the growth of its active customer base and support the integration of Alhokair brands and ACC tenant brands onto the e-commerce platform. Post transaction, Alhokair and ACC will own a combined 51% stake in Vogacloset.
It is envisaged that Vogacloset will be integrated with a Joint Venture ("JV") established by the buyers to support the development of future opportunities aimed at building the two leading Saudi retail players' unmatched omnichannel experience, for consumers and merchants alike. Plans already in the pipeline include the launch of a loyalty programme, along with a consumer finance offering.
Commenting on the acquisition, Marwan Moukarzel, Chief Executive Officer of Alhokair, said:
"Our investment in an online fashion and beauty platform of Vogacloset's calibre is a significant milestone in our transformation and represents an exciting opportunity. This strategic investment in a sizeable and profitable regional e-commerce player is the most direct route for Alhokair to extend its leadership position in its core Saudi market – from offline to the online space, while safeguarding our competitive market position. We remain committed to our digital integration programme and transition to a lifestyle retailer of choice. Through Vogacloset's platform, we look forward to introducing a range of brands online that is unmatched in the Saudi retail space, addressing our growing customer demand for a genuinely omnichannel experience, and giving our brands extended reach."