Shares of Hugo Boss rose sharply on Thursday after Britain’s Frasers Group announced a takeover offer worth approximately €1.98 billion ($2.3 billion) for the German fashion company.
The offer comes from Hugo Boss’ largest shareholder, Frasers Group, which already owns slightly more than 26% of the company’s shares.
Frasers has proposed a cash offer of €38 per share for the remaining shares it does not already own, representing a premium of around 4% to Hugo Boss’ closing price on Wednesday.
At the time of writing, Hugo Boss shares were trading at €38.89, up more than 6.6% and above the proposed offer price.
The move extended the stock’s gains for the year to 7.2%.
Shares of Frasers Group, meanwhile, fell 2.5%.
Unsolicited approach under review
Hugo Boss said the proposal was not coordinated with the company and confirmed that its board would review the offer.
In a statement, the company said it would “thoroughly examine” the proposal before making any decisions.
The offer values the stake in Hugo Boss not currently owned by Frasers at approximately €1.978 billion.
Frasers said the transaction remains subject to regulatory approvals and is expected to be completed during the second half of 2026.
Frasers looks to expand fashion portfolio
If completed, the acquisition would bring Hugo Boss fully under the control of Frasers Group, the retail conglomerate led by British billionaire Mike Ashley.
Frasers owns major retail businesses, including Sports Direct and House of Fraser.
The group also holds stakes in several retail and e-commerce companies, including ASOS, Debenhams, and Currys.
Despite seeking full ownership, Frasers indicated that it remains supportive of Hugo Boss’ existing management team and long-term strategy.
The company said it continues to back Chief Executive Officer Daniel Grieder and Supervisory Board Chairman Stephan Sturm.
Analysts see limited upside
Market analysts offered mixed views on the proposed transaction.
According to JP Morgan, the offer is likely to establish a near-term floor for Hugo Boss shares.
However, the bank said it sees limited room for significant additional gains and does not expect a competing bidder to emerge.
Analysts at Citi described the premium as “modest.”
In a note issued on Wednesday, they said the offer should limit further stake-building activity while also encouraging speculation that a higher bid could eventually be made.
The Citi analysts added, “We expect moderate near-term share price upside.”
Hugo Boss continues turnaround efforts
The takeover proposal arrives at a time when Hugo Boss is working to improve its performance following a period of weaker sales.
The company’s shares remain roughly half the level seen three years ago.
As part of its turnaround strategy, Hugo Boss has been focusing on modernising stores, streamlining its product range, and expanding its women’s wear business.
Headquartered in Metzingen, Hugo Boss is a global luxury fashion company that designs, manufactures, and markets apparel, footwear, leather goods, accessories, and fragrances for men, women, and children.
The company operates two internationally recognised brands, each targeting different customer segments, while maintaining a focus on premium quality and craftsmanship.
The proposed acquisition marks a significant step in Frasers Group’s efforts to strengthen its presence in the global fashion sector.
It could reshape the future ownership structure of one of Germany’s most recognised luxury fashion brands.
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