One hundred per cent of baby and maternitywear retailer JoJo Maman Bébé has been acquired by Next (44%) and investment funds and vehicles managed or advised by Davidson Kempner Capital Management LP (56%). The shares were acquired from existing JoJo shareholders, including founder Laura Tenison. Next will make an equity investment of £16.3m funded from its own cash resources.
There will be no immediate job losses. However, as part of the transaction, Tenison will leave the business. Gwynn Milligan, who joined JoJo Maman Bébé in 2017 as commercial director, has taken over the role of CEO. The remaining directors will be staying in their posts.
Whilst retaining its brand identity, values and talent, JoJo Maman Bébé is set to benefit from the economies of scale of its bigger umbrella.
Plans are to expand and grow the brand faster, with the opportunity to open in new markets. “There may be opportunities for more stores, new international websites, and more trade sales both in the UK and abroad,” says Tenison.
“Growing JoJo from a kitchen table start-up to being the UK’s leading specialist boutique mother and baby brand has been my priority for the past 30 years. I’m exceptionally proud of our achievements, and excited by the opportunities this new partnership will offer to the brand’s future.”
Jojo Maman Bébé will continue to operate its 87 retail stores, which are key to the overall omnichannel model. Plans, however, will include considering new openings across the UK and Ireland. Equally, JoJo Maman Bébé will keep its own dedicated website.
“We are likely to migrate to the Next Total Platform software at some stage, which will provide substantial benefits for JoJo and its customers in terms of the online order, delivery and return experience,” adds Tenison. “However, that will take some planning. So, for at least the next two seasons, it is business as usual with our current web platform.”
An important aspect of the Next investment is that JoJo Maman Bébé will retain its management autonomy and creative independence; benefiting from the collective experience of Next and Davidson Kempner to continue growing successfully.
The intention is that Next’s infrastructure – its online systems, warehousing, distribution assets and sourcing base – will catalyze JoJo Maman Bébé’s ongoing growth and profitability, both in the UK and overseas.
Commenting is Simon Wolfson, Next’s chief executive.
“Next is delighted at the prospect of its Total Platform supporting JoJo on the next stage of its growth and development. We are excited to see what can be achieved through the combination of JoJo’s exceptional product with Next’s infrastructure and Davidson Kempner as our investment partner.”
After accounting for integration and acquisition costs, the investment is not expected to have any material impact on Next’s group profits in the current financial year. However, a positive contribution is expected thereafter.
