Riyadh – Mubasher: Fawaz Abdulaziz Alhokair Co. (Alhokair) and Arabian Centres Company (ACC) will acquire a combined 51% stake in Vogacloset, a UK-based online fast fashion platform offering over 400 brands in the latest women’s, men’s and kids’ trends to fashion enthusiasts in the Middle East.

Alhokair and ACC will acquire 41.2% of Vogacloset’s existing shares based on a pre-money valuation of $60 million, subject to an earn-out structure conditional on certain growth thresholds, according to a press release on Wednesday.

Additionally, $12 million will be injected into the capital of Vogacloset to further develop its presence in the Saudi market.

Vogacloset will be integrated with a joint venture (JV) established by the buyers to support the development of future opportunities aimed at building the two leading Saudi retail players’ unmatched omnichannel experience, for consumers and merchants alike.

“This strategic investment in a sizeable and profitable regional e-commerce player is the most direct route for Alhokair to extend its leadership position in its core Saudi market – from offline to the online space,” said CEO of Alhokair, Marwan Moukarzel.

For his part, CEO of ACC, Faisal Al Jedaie, commented, “In line with our ambition to create Saudi Arabia’s first specialised digital retail platform, the partnership with Vogacloset will greatly enhance convenience and engagement for tenants and customers. The JV will add value to ACC by enabling us to offer a more holistic proposition for all our mall tenants.”

CEO of Vogacloset, Hanin Hamarneh, said, “This partnership, and the new investment that it will bring, will support and accelerate the execution of our very ambitious growth plans in Saudi Arabia and the Middle East.”

The transaction is expected to be completed by the end of June 2021.