Next has announced that it has signed terms to acquire FatFace for a total equity value of £115.2m ("Consideration") from a consortium of Financial Institutions (the "Sellers"). The Consideration will be settled partly in cash and partly by the issue of new Next shares and management equity rolling over into the new structure. The transaction will not materially impact the Next Group's underlying profit before tax or EPS in the current year.

After completing this transaction, which is expected to occur within the next few weeks, Next will hold 97% of the equity and FatFace's management will hold 3% of the business. Management will also participate in an additional performance-related equity scheme. FatFace will retain its management autonomy and creative independence. The company will retain its own Board of Directors and continue to be based in Havant, Hampshire, UK. FatFace has been a LABEL brand selling on next.co.uk since 2016 and it is anticipated to migrate its online operations onto Next's Total Platform within the next twelve months.

The announcement follows a period of strong trading for FatFace under the leadership of its CEO Will Crumbie. In the 52 weeks to 27 May 2023, FatFace achieved total sales of £282m. Statutory profit before tax in the same period was £19.5m. Digital channels account for 40% of FatFace sales, with the remainder largely coming from its retail stores. It is anticipated that the company will continue to trade and develop its own retail store portfolio. Will Crumbie, who joined FatFace as CFO in 2014 and became CEO in 2021, will continue to lead the business.