LONDON, UK: Frasers Group plc, a leading retail group, has announced its acquisition of an 18.9% strategic stake in AO World Plc (AO), a prominent online electricals retailer.

The acquisition, which took place on June 9, 2023, involved Frasers purchasing 109,400,000 issued shares of AO at a price of 68p per share, resulting in a total investment of £75 million.

AO World Plc disclosed the details of the transaction in an announcement on the same day, expressing excitement about the establishment of a strategic partnership after productive discussions that spanned two years.

Michael Murray, CEO of Frasers Group, expressed admiration for what John Roberts and the AO team have accomplished and emphasized the opportunity to form a supportive strategic partnership. Murray noted that AO is a remarkable business with a clear strategy and a leading position in the online-only electricals market. Frasers intends to leverage AO’s valuable expertise in electricals and two-man delivery to drive growth in its bulk equipment and homeware ranges. At the same time, AO will have the chance to benefit from Frasers’ expertise and ecosystem.

John Roberts, Founder and CEO of AO, welcomed the acquisition as great news for the company, considering it a fantastic endorsement of their business. Roberts expressed excitement about welcoming Michael Murray and the wider Frasers team into the AO family, anticipating the realization of significant potential through the strategic partnership. He highlighted AO’s ongoing strategy of pivoting to profitable growth and looked forward to exploring compelling strategic opportunities together with Frasers. The partnership is expected to bring new prospects and collaborations that will contribute to the continued success of AO.

The acquisition of the stake by Frasers Group and the subsequent strategic partnership with AO signify a significant development in the retail industry. The collaboration between these two prominent players is poised to generate synergies and drive growth, leveraging their respective expertise and market positions.