Frasers Group, the parent of Sports Direct, acquired luxury e-tailer Matchesfashion, recently renamed Matches, for £52 million ($63 million). The seller is Apax Partners, which acquired the business in 2017.

Matches’ gross assets were valued at £170 million for the fiscal year ended January 31, 2023. Sales in the period dipped slightly to £380 million, while losses widened to £39.8 million on an adjusted EBITDA basis, compared to £25 million the previous year.

Frasers said, “The acquisition is an opportunity to further develop Frasers’ Elevation Strategy and strengthen Frasers’ luxury offering in which it has established a presence through its Flannels brand.”

Nick Beighton, chief executive officer of Matches, will work closely with the Frasers team to develop a strategy to build on the strength of the business synergistically with Frasers.

Michael Murray, CEO of Frasers, said, “Matches has always been a leader in online luxury retail and has incredible relationships with its brand partners. This acquisition will strengthen Frasers’ luxury offering, further deepening our relationships and accelerating our mission to provide consumers with access to the world’s best brands. Whilst the global luxury environment is softer, we are confident that, by leveraging our industry-leading ecosystem, we will unlock synergies and drive profitable growth for Matches.”

Beighton said, “Since I joined Matches last year, we have made good progress, sharpening our brand and product curation and improving the day-to-day operations of the business. As a result, we have seen a resilient trading performance despite the challenging economic backdrop. Being part of Frasers, with their utter commitment to luxury, will give this business access to greater scale, best-in-class retail expertise and the financial stability it needs to more effectively deliver for our brand partners and our customers.”