Dubai: Saudi retailer Fawaz Abdulaziz Alhokair Co. (Alhokair) and Arabian Centres Company (ACC) will acquire a combined 51 per cent stake in Vogacloset, a UK-based online fast fashion platform.
The buyers will acquire 41.2 per cent of Vogacloset’s existing shares based on a pre-money valuation of $60 million, subject to an earn-out structure conditional on certain growth thresholds. In addition, $12 million will be injected into the capital of Vogacloset to further develop its presence in the Saudi market and support the integration of Alhokair brands and ACC tenant brands onto the e-commerce platform.
“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,” said Marwan Moukarzel, Chief Executive Officer of Alhokair.
The companies will integrate Vogacloset with a joint venture to support opportunities aimed at building the two Saudi retail players’ omnichannel capabilities. Plans are “already in the pipeline” for the launch of a loyalty programme and a consumer finance offering.
“In line with our ambition to create Saudi Arabia’s first specialized digital retail platform, the partnership with Vogacloset will greatly enhance convenience and engagement for tenants and customers,” said Faisal Al Jedaie, Chief Executive Officer of ACC.
The deal is expected to be completed by end of June 2021, subject to the fulfilment of various conditions.