Saudi’s Arabian Centres, Alhokair to buy 51% stake in UK’s VogaCloset for $37mln

Saudi’s Arabian Centres, Alhokair to buy 51% stake in UK’s VogaCloset for $37mln

Saudi Arabia-based Arabian Centres Co (ACC) and Fawaz Abdulaziz Alhokair Co. have signed agreements to acquire 51 percent of an e-commerce platform for 138 million riyals ($37 million).The buyers will acquire 41.2 per cent of VogaCloset's existing shares in a joint venture based on a pre-money valuation of $60 million, subject to an earn-out structure conditional on certain growth thresholds according to a joint statement released Wednesday.An additional $12 million will be injected into VogaCloset to develop its presence in Saudi Arabia, grow its customer base and support the integration of Alhokair and ACC's brands onto the e-commerce platform.VogaCloset is the owner and operator of the online platform www.vogacloset.com. It is a UK-based online store offering the latest fashion trends from the runways directly to buyers in the Middle East.Post transaction, Alhokair and ACC will own a combined 51 per cent stake in Vogacloset, the companies said.Both companies said they will finance the acquisition internally and the deal value will be paid in cash to VogaCloset shareholders, when the amended memorandum of association is signed.“Partnering with Alhokair and ACC in Saudi Arabia, our key market, is a strategic leap for VogaCloset,” said Hanin Hamarneh, CEO of VogaCloset. “This partnership, and