NEXT PLC has announced that it will acquire FatFace for a total equity value of £115.2 million. The acquisition will be settled partly in cash and partly through the issuance of new NEXT shares. Upon completion of the transaction, NEXT will hold 97% of the equity in FatFace, while FatFace's management will hold 3%. FatFace will retain its management autonomy and creative independence, and its management will also participate in an additional performance-related equity scheme. The company will continue to be based in Havant, Hampshire, UK, and will retain its own Board of Directors.

FatFace has been a LABEL brand selling on next.co.uk since 2016, and it is expected to migrate its online operations onto NEXT's Total Platform within the next twelve months. In the 52 weeks to 27 May 2023, FatFace achieved total sales of £282 million, with digital channels accounting for 40% of its sales. The company has over 180 stores in the UK and Ireland, over 25 stores in the US and Canada, and 1.8 million active customers. FatFace is known for its sustainability efforts and was recently awarded B Corp™ status.

Will Crumbie, CEO of FatFace, will continue to lead the business. The acquisition is not expected to materially impact NEXT's underlying profit before tax or earnings per share in the current year.