Apax acquires Matchesfashion.com majority stake

Matchesfashion.com have confirmed venture capital group Apax Investments have acquired a majority stake in the company for an undisclosed amount.

According to media reports the value of the London-based fashion emporium is in the realm of 800 million pounds, which sees founders Tom and Ruth Chapman, Scottish Equity Partners and Highland Europe retaining minority stakes in the company.

In 2016 matchesfashion.com had revenue of 204 million pounds, with estimates for 2017 closer to 300 million. This would mean the company is valued at four times its current annual turnover. Profit margin for 2017 is estimated at 40 million pounds.

The number one luxury fashion commerce company

Tom Chapman in a statement said: “The business has never been in a stronger position and after 30 years of growing this business Ruth and I are ready to take on new challenges while remaining shareholders and taking on an advisory role. Our world class team led by chief executive officer, Ulric Jerome and chief financial officer, Fiona Greiner will continue to drive Matchesfashion.com to becoming the number one luxury fashion commerce company in the world.”

Ulric Jerome stated: "We will continue to support our potential to become the number one luxury fashion commerce company in the world. Apax’s experience in both consumer and technology spaces will be a great fit with our business."

According to WWD, the company's rising profits and ongoing commitment to digital innovation and the customer experience made Matches an attractive investment for Apax, which is perhaps best known for its investments in Tommy Hilfiger for its European business, and in Calvin Klein. Both are now owned by PVH Corp.

Gabriele Cipparrone, a partner at Apax Partners, said: “Matchesfashion.com has emerged as one of the leading players in the online luxury space globally. Tom and Ruth, along with Ulric and his management team, have done a tremendous job in expanding the business in a sector that continues to demonstrate huge growth potential. Online penetration of the luxury market is still small and we anticipate this will grow significantly in the coming years. Matches, with its distinctive assortment, unique voice, and unparalleled customer service, is ideally placed to attract and encourage this growth in the online luxury market.”

Founded in 1987 by the Chapmans, matchesfashion.com started as a single boutique in Wimbledon and today is a global luxury-shopping destination with over 450 designers and brands, and delivering to 176 countries. The company is headquartered in The Shard, London and employs over 500 people.

Photo credit: Matches Fashion Marylebone, source: Wikimedia Commons