City Chic Collective (ASX:CCX)
has signed and completed a share purchase agreement to acquire 100 per cent of the shares in JPC United for $9.6 million in cash, from the co-founders of Navabi. City Chic is a global omni-channel retailer specialising in plus-size women apparel, footwear and accessories.
In 2009, Navabi was established as an online marketplace selling hundreds of third-party women's plus-size brands. Navabis customer base focuses on size, fit and quality and is based predominantly in Germany. Navabi's website had 5.8 million customer visits in 2020, generating 6.6 million in sales revenue. The company was impacted by the Covid-19 pandemic, with traffic in prior years exceeding 10 million visits.
City Chic's Chief Executive Officer and Managing Director Phil Ryan said, "navabi is an exciting strategic opportunity, giving us a great foothold in the EU $40 billion plus-size market, which is the next key geography in driving towards our vision to lead a world of curves."
City Chic has acquired 100 per cent of the shares in Navabi, including all assets and liabilities of the company. The acquisition will be funded from City Chic's existing cash balance which was $71.5 million as at 27 Jun 2021.
Shares in City Chic Collective (ASX:CCX)
are trading 5.2 per cent higher at $5.69.