Myer has sealed “one of the most significant” deals in the department’s store’s 124-year history to acquire the clothing division of Premier Investments.
As part of the deal, Apparel Brands — which is made up of Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E — will move under Myer, giving the retail giant a footprint of more than 780 stores across Australia and New Zealand.
Myer first approached Premier about the deal last June, before the companies struck a deal in October that would see Premier retain ownership of its Smiggle stationery brand and sleepwear label Peter Alexander.
Shareholders for both Myer and Premier Investments were required to approve the deal, with both holding meetings for investors in Melbourne on Thursday morning.
However, proxy votes from Myer and Premier shareholders — cast before the formal meeting — showed the majority of investors had already approved the deal.
Ninety-five per cent of Myer shareholders had voting in favour of the merger, while 99.8 per cent of Premier’s shareholders approved the move.
At the start of the meeting, Myer chair and chief executive Olivia Worth said the merger was “compelling and in the best interests of Myer shareholders”.
“Today you are voting on one of the most important transactions in the corporation’s history,” she told shareholders.
Just Jeans is one of the brands set to become part of Myer, along with Jay Jays, Dotti, Portmans and Jacqui E.
(AAP: Julian Smith)
Ms Wirth said it was crucial for retailers to innovate to grow their business, and acknowledged that Myer has “not been immune” from the higher cost of living affecting shoppers and the retail sector.
“That, in essence, is what today is about — adapting our business to ensure it is best placed to thrive in the years ahead in a highly competitive and rapidly evolving retail market,” she said.
“The combination of Myer and Apparel Brands … brings together two businesses that are highly complementary.”
Ms Wirth said the combined group would create a “leading retail platform” in Australia and New Zealand, which recorded more than $4 billion worth of sales in the last financial year.
The tie up of Myer and Premier Investments has been years in the making, following a long pursuit by billionaire investor Solomon Lew, who has provided his critique of Myer management along the way.
Mr Lew, Premier’s chairman, will rejoin Myer’s board as part of the deal, after his previous tenure on the Coles Myer board two decades ago.
Premier was already the biggest shareholder in Myer, owning nearly a third of the company.
The deal will be formalised after the meeting of Premier shareholders later on Thursday morning.
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