Warburg Pincus agrees to sell 34% stake in Reiss Group

Reiss is a clothing company based in London.

  • NEXT will up its stake in Reiss to 72 percent from 51 percent
  • Warburg Pincus invested in Reiss in 2016
  • Warburg Pincus is a global growth investor that manages over $83bn of assets

Warburg Pincus has agreed to sell 34 percent interest in Reiss Group to NEXT and the Reiss family for total consideration of £128 million ($161 million; €149 million) on a fully diluted basis.

Reiss, based in London, is a clothing company present in over 18 countries. It reported total sales of £324.6 million, a 26.4 percent rise on the prior year and profit before tax in the same period was £51.6 million, up by 50.5 percent on the prior year.

NEXT’s holding in the Reiss business will increase from 51 percent to 72 percent and the Reiss family’s holding will increase to 22 percent and its management team will hold 6 percent equity, according to a release.

“Warburg Pincus is proud to have supported Reiss through its growth journey since 2016,” said Adarsh Sarma, MD and Rianne Schipper, principal, Warburg Pincus. “We have also been delighted by our partnership with NEXT and the way in which NEXT’s Total Platform has accelerated growth and enhanced the performance of the business.”

The transaction, subject to regulatory approvals, is expected to be completed in mid-October.

Christos Angelides, Reiss’ CEO, will remain in that role.

Reiss will retain its own board of directors, and management will retain autonomy, the release said.

NEXT is an online clothing retailer headquartered in Leicester, UK.

Warburg Pincus is a global growth investor with over $83 billion in assets under management. The firm is headquartered in New York.

Kirkland & Ellis served as legal advisor to Warburg Pincus.