Brait buys 90% of New Look in £780m deal, its second UK grab in a month

Brait , the investment firm controlled by South African billionaire Christo Wiese, has agreed to pay £780m for a 90% stake in UK fashion retailer New Look . Founder Tom Singh, who owns 22% of the business, will cash in most of his holding but keep a stake. The deal values New Look at £1.9bn including debt.

New Look, founded in 1969 in Taunton, Somerset, runs 569 stores in the UK and 200 more across Europe, China, Africa, the Middle East, and Asia. Brait is Wiese's vehicle for retail bets. He built a fortune estimated at $7bn through Shoprite and Pepkor, which operates 3,700 clothing stores worldwide.

Private equity owners Apax and Permira had been eager to sell after 11 years. Retail analyst Nick Bubb said an IPO "had never looked feasible" given New Look's "chequered UK history and unproven Chinese potential."

Chief executive Anders Kristiansen, who stays on, said Brait supported his strategy of international expansion, higher online sales, and new lines like cosmetics and menswear. New Look aimed to open more than 50 additional stores in China by April 2016.

New Look's UK performance has been mixed. In the final three months of 2014, like-for-like sales fell 1%, though online sales rose by a third. The retailer withdrew from Russia and sold its French budget chain Mim.

The purchase is Brait's second big UK move in a month, following its £682m buy of Sir Richard Branson's 80% stake in Virgin Active. It also sets up a clash: New Look will now compete directly with Pep & Co, a separate fashion venture backed by Wiese.