Saudi companies to acquire 51 percent of Vogacloset
Fawaz Abdulaziz Alhokair Co., the leading franchise retailer in Saudi Arabia, and Arabian Centres Company, the leading owner, developer and operator of lifestyle shopping centers in Saudi Arabia, have announced that they will acquire a combined 51per cent stake in Vogacloset, a UK-based online fast fashion platform offering over 400 brands in the latest women’s, men’s and kids’ trends to fashion enthusiasts in the Middle East.
The buyers will acquire 41.2 per cent of Vogacloset’s existing shares based on a pre-money valuation of USD 60 million, subject to an earn-out structure conditional on certain growth thresholds. In addition, USD 12 million will be injected into the capital of Vogacloset to further develop its presence in the Saudi market, accelerate the growth of its active customer base and support the integration of Alhokair brands and ACC tenant brands onto the e-commerce platform. Post transaction, Alhokair and ACC will own a combined 51% stake in Vogacloset.
It is envisaged that Vogacloset will be integrated with a Joint Venture established by the buyers to support the development of future opportunities aimed at building the two leading Saudi retail players’ unmatched omni-channel experience, for consumers and merchants alike. Plans already in the pipeline include the launch of a loyalty program, along with a consumer finance offering.
The buyers’ principal strategic objective for their investment in Vogacloset is to accelerate digital transformation and create a truly modern retail business. Partnering with a leading e-commerce platform is the first pillar of this strategy, with the intention to create an industry-leading partnership in Saudi Arabia that leverages Vogacloset’s asset light and customer centric business model, efficient logistics chain and deep understanding of regional and global fashion trends.