Frasers Group reportedly preparing for takeover of THG’s ProBikeKit
Frasers Group is believed to be continuing its string of acquisitions, as it reportedly prepares for a potential takeover of cycling goods specialist ProBikeKit (PBK).
It is believed that the high street retail empire is in “advanced talks” with PBK’s owner, online beauty and nutrition retailer THG, and is said to be close to buying the brand’s stock and intellectual property assets.
The news was reported by Sky News, which cited city sources and stated that a deal could be finalised and announced later this week.
It comes as THG looks to either close or sell a number of its non-core subsidiaries in light of declining revenue over the past year.
The LSE-listed company had recently implemented a review of its organisation in a bid to maximise shareholder value and improve cashflow as it faced increasing pressure from investors to deliver on commitments made by the group.
PBK, which was bought by THG in 2013, sells a range of clothing and accessories by over 100 brands, including Adidas and Michelin.
If taken over by Frasers, it would support the conglomerate’s ongoing expansion strategy, which has seen it snap up a multitude of smaller or struggling rival brands and invest in more upmarket labels.
In the past year the group has acquired Missguided, Studio Retail, and I Saw It First, among others, and has snapped up stakes in the likes of Hugo Boss, Mulberry, and N Brown.