Frasers Group, the retail company controlled by Mike Ashley, has launched a near-€2bn takeover offer for German luxury fashion brand Hugo Boss, seeking full ownership of a business in which it already holds a 26% stake. The bid values the remaining shares at about €1.98bn, or €38 per share, slightly above Hugo Boss’s closing price of €36.44 on Wednesday. If completed, the deal would bring Hugo Boss under the same corporate umbrella as Frasers brands including Sports Direct, the Frasers department stores chain, Flannels and Evans Cycles.
The move follows years of speculation that Frasers might pursue a full takeover after steadily increasing its holding since first investing in Hugo Boss in 2020. Frasers chief executive Michael Murray, who took over day-to-day control of the group from Ashley in 2022, sits on Hugo Boss’s supervisory board because of the stake, although the company said he did not take part in the board discussion or decision to make the offer.
Frasers said it remains a long-term supporter of Hugo Boss and its management, including supervisory board chair Stephan Sturm and chief executive Daniel Grieder, and believes increasing its investment will create value for its shareholders. The company described Hugo Boss as a key brand partner and one of its top five brands, signalling that the takeover is part of a broader strategy to deepen its influence over major fashion labels.
The offer is expected to be put to a shareholder vote and, if approved and cleared by regulators, Frasers said it hopes to complete the transaction in the second half of this year. The UK retailer has a market value of about £3.45bn, and a successful acquisition would be one of its biggest moves to date.
Hugo Boss, founded in 1924 and listed on the Frankfurt stock exchange, has already been a major contributor to Frasers’ financial performance. Late last year, Frasers said the value of its stake in the German company had significantly boosted its bottom line.
The bid also highlights the continued rise of Mike Ashley, who founded his business with a single sports store in Maidenhead in 1982 using £10,000 from his parents. Ashley left school at 16, briefly pursued professional squash before injury ended that path, and went on to build a retail empire. He retains a 73% stake in Frasers and his wealth has been estimated at £3.44bn, according to the Sunday Times Rich List.
If the takeover succeeds, it would mark another major expansion for Frasers as it looks to strengthen its position in the fashion and sporting goods market through ownership of premium brands.
