Myer is pushing forward with a plan to emerge as a new major player in the fashion and apparel sector after announcing that it has reached a deal to acquire Solomon Lew’s Apparel Brands which are a part of Premier Investments.

According to Myer, the deal which will result in it buying Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E will result in annual sales of more than $4 billion, $250 million in earnings and a footprint of more than 700 stores for the combined entity – as well as see Lew returning to Myer’s board as a director, alongside him retaining his position as chairman at Premier.

Myer currently has 56 stores, but will take on 719 Apparel Brand stores across Australia and New Zealand.

Former Qantas executive Olivia Wirth was appointed Myer executive chairwoman last month

Former Qantas executive Olivia Wirth was appointed Myer executive chairwoman this year

“The combination of Myer and Apparel Brands is transformational for our business. If approved by shareholders, it will create a leading retail group with more than 780 stores across Australia and New Zealand, with a large and highly engaged customer base and capital to fund future investment and growth,” said Oliva Wirth, Myer executive chair, who took over the top job earlier this year.

“Myer and Apparel Brands have highly complementary store footprints and customers who will benefit from an expanded omni-channel ecosystem that enables them to engage with the Group’s loved brands when and how they want.”

Premier investors will receive 890.5 million new Myer shares which are worth $863.78 million based on Monday’s closing share price as part of the merger to pay for the five brands.

The department store will also declare before deal completion a fully franked dividend of 2.5¢ per share to existing shareholders.

There will also be an $82 million cash contribution from Premier Investments to Myer for the deal.

Solomon Lew

Lew will once again play a major and direct role within Myer’s board. He was the former chairman of the old Coles Myer conglomerate, and following the latest deal which will distribute the Myer scrip to its shareholders, the largest beneficiary is Lew’s Century Plaza private company.

Therefore, Lew will emerge as Myer’s largest shareholder – replacing Premier Investments which currently is Myer’s largest investor – with the retail billionaire set to now command a 26.8 per cent personal stake in Myer.

“This is an opportunity for our team and our shareholders to play an important role in the future of the Australian and New Zealand retail landscape. Myer and our Apparel Brands will be stronger together – delivering vertical integration, scale, additional margins and loyalty opportunities,” said Lew.

Premier’s share price climbed nearly 15 per cent on Tuesday as news of the deal became public.

It is expected to be completed early in the 2025 calendar year once Myer and Premier shareholders agree to it.

Premier Investments said that it is focused on growing its Peter Alexander sleepwear and Smiggle stationery brands, which will remain under its control. “Premier’s Board will be focused on the ongoing growth and performance of Smiggle and Peter Alexander, including as they pursue local and international growth opportunities,” added Lew.