Frasers Group’s £1.7 billion bid to buy Hugo Boss has moved a step closer after it acquired more shares to pass the mandatory bid threshold of 30%.
Frasers has acquired a further 3.69% of the share capital and voting rights of the legendary German fashion designer. It now holds 30.28% – passing the threshold for required bids under the German takeover code.
Frasers said its cash offer of €38 per share remains open for shareholders to accept. The initial acceptance period for the offer will end on Monday 27th July.
Listed firm Hugo Boss makes high-quality men’s and women’s apparel, shoes and accessories.
Subject to regulatory clearances, Frasers expects the offer to complete in the second half of 2026.
Frasers CEO Michael Murray is a member of the supervisory board of Hugo Boss and as such he did not participate in the board’s discussion of the offer.
Frasers counts Sports Direct and GAME among its brands but the latter – a videogame retailer – collapsed into administration yesterday owing £16m.
Frasers says Hugo Boss is one of the top five brands across its group. It is a long-term investor in Hugo Boss and said it remains supportive of both Stephan Sturm, the chair of the supervisory board, and Daniel Grieder, CEO.
The firm has entered into an acquisition facility agreement with, among others, BNP Paribas, Deutsche Bank Luxembourg S.A., National Westminster Bank plc and Standard Chartered Bank as lenders.
This gives Frasers a credit line, if required, for the purpose of the offer and paying associated acquisition costs. Frasers may also finance part or all of the offer from its existing term loan and revolving credit facility.
The gross assets of Hugo Boss at the end of 2025 amounted to €3.7bn, with net assets of almost €1.6bn. It reported revenues of almost €4.3bn and EBITDA of €782 million.