Frasers Announces Takeover Bid of Hugo Boss

Frasers Group, led by CEO Michael Murray and majority shareholder Mike Ashley, has launched a €2bn (US$2.3bn) takeover bid to acquire Hugo Boss.

Frasers is currently Hugo Boss’s largest shareholder and is offering €38 (US$43.99) per share in cash for the remaining shares – a 4.3% premium to the €36.44 (US$42.19) closing price of Hugo Boss stock yesterday. 

Hugo Boss would become the latest addition to Fraser’s massive retail portfolio, which includes Sports Direct and House of Fraser under Frasers Group, as well as stakes held by Frasers in ASOS, Debenhams and Currys.

In a company statement on the takeover bid, Frasers says: “To facilitate further investment by Frasers in Hugo Boss, Frasers has decided to make a voluntary public takeover offer to all Hugo Boss shareholders for all Hugo Boss shares not directly held by Frasers”.

Frasers' elevation strategy

Recently, Hugo Boss has been struggling with falling sales and set out a new strategy six months ago to revamp stores, streamline its product range and offer more womenswear.

Company shares are trading at around half their value compared to their value three years ago.

In a statement, Hugo Boss said that Frasers did not coordinate the takeover approach with the company and that its board will review the offer, which values the remaining shares – representing 73.94% of the company – at around €1.98bn (US$2.29bn).

Frasers responded by saying it has confidence in the Hugo Boss brand under CEO Daniel Grieder and Chairman Stephen Sturm’s leadership, a reversal of its previously stated belief in November that it no longer had confidence in Stephen as company chair.

The company initially took a 5% stake in Hugo Boss in 2020 and was part of a strategy to revamp Frasers with a more luxury-focused image.

Since then, Frasers has been slowly increasing its stake in Hugo Boss and currently holds a 26.06% stake in the company. Michael was previously nominated to Hugo Boss’s supervisory board in 2024.

Creating value for company shareholders

Under German corporate takeover rules, if Frasers breaches the 30% ownership threshold, it would have to make an offer for the remaining stock.

This isn’t the first time Frasers has made a takeover bid with its rivals and suppliers.

Earlier this year, the group acquired a near 6% stake in Puma, a major supplier to Frasers subsidiary Sports Direct.

Moves like this are part of a strategy to secure supply of specific brands or apply pressure on them to adopt the Frasers’s services, such as its buy now, pay later initiative.

Frasers said that it expected the takeover to be completed by the end of this year, providing it passes all the legal checks.

The company adds in a statement that its board of directors believes that increasing its investment in Hugo Boss “will create value for Frasers’ shareholders”.

In response to the offer, Hugo Boss added that the “unsolicited” offer had “not been coordinated with the company”, saying that it would “inform its shareholders and the public about further developments and next steps”.