NEXT, the Leicester-headquartered retailer, has acquired a slice (44%) of JoJo Maman Bebe, the mother and baby brand, alongside investment funds and vehicles managed or advised by Davidson Kempner Capital Management LP (56%).
The shares were acquired from existing JoJo shareholders, including the founder Laura Tenison, who, as part of the transaction, will leave the business.
Gwynn Milligan, who joined JoJo in 2017 as commercial director, has taken over the role of CEO and the other JoJo directors will be staying in their posts.
No immediate redundancies are anticipated.
Laura Tenison said: “Growing JoJo from a kitchen table start-up to being the UK’s leading specialist boutique mother and baby brand has been my priority for the past 30 years. I’m exceptionally proud of our achievements, and excited by the opportunities this new partnership will offer to the brand’s future.”
Simon Wolfson, NEXT’s Chief Executive, said: “NEXT is delighted at the prospect of its Total Platform supporting JoJo on the next stage of its growth and development. We are excited to see what can be achieved through the combination of JoJo’s exceptional product with NEXT’s infrastructure and Davidson Kempner as our investment partner.”
NEXT will make an equity investment of £16.3m funded from its own cash resources.
According to NEXT, JoJo will retain its management autonomy and creative independence, benefitting from the collective experience of NEXT and Davidson Kempner to continue growing successfully.
The investment is not expected to have any material impact on NEXT’s group profits in the current financial year, but is expected to make a positive contribution thereafter.
