Baugur Acquires Karen Millen

Baugur, the Icelandic retail group, has bought the Karen Millen fashion chain in a GBP120m deal. The acquisition creates a womenswear retail business with four strong brands, combining the Baugur-owned Oasis and Coast with Whistles, also owned by Karen Millen, as well as the Karen Millen chain itself. The combined businesses will have total sales of more than GBP350m and operate 550 stores

Kevin Stanford and Karen Millen, who own 60 per cent of the company, have agreed a deal which will see the Oasis group, owned by Baugur, pay GBP120m in a mixture of cash and shares. The Karen Millen shareholders will have a 25 per cent stake in the enlarged group.

Karen Millen operates more than 100 stores worldwide, with turnover predicted to be around GBP120m this year. Whistles, was acquired by Karen Millen in July 2002 for GBP6m, and is forecast to have a turnover of GBP35m by the end of 2005. Stanford, chief executive of Karen Millen said: "We've brought the business a very long way over the past 24 years and it's now time to move on. We started this business in our teens and we don't want to do the same thing all our lives.

Derek Lovelock chief executive of the Oasis group, said: "Karen Millen and Whistles are two successful brands which complement our own brands perfectly and this acquisition creates a very attractive portfolio."

"There will be substantial synergies in adding these two brands to the Oasis infrastructure. We will continue to build on this strong base and expect to open 50 new stores per year across all four brands." Baugur has further acquired control of toy chain Hamleys and jeweller Goldsmiths, and also holds stakes in House of Fraser, Somerfield and Big Food Group.