Solomon Lew ties together retail brands to build brick-and-mortar empire
Solomon Lew’s Premier Investments and department store Myer, in which Lew is the largest shareholder, have combined their brick-and-mortar assets to create an Australian retail behemoth.
Technically, Myer is buying Premier’s Apparel Brands – 719 retail stores across five well-known brands: Just Jeans, Dotti, Jays Jay, Portman’s, and Jacqui E – for 890.5 million Myer shares. Premier Investments will, in turn, pump $82 million in cash into Myer to fund the merger.
Based on Myer’s closing price of 97c before the deal was announced, the deal is worth $864 million. Once complete, Premier shareholders will hold 51.5% of Myer.
Lew will both hold a 26.8% stake in Myer – via his private investment arm Century Plaza Investment – as well as his 40% stake in Premier. Lew will remain chairman of Premier, and take a board seat at Myer, where Premier board member Terry McCartney already holds a seat – as does former Premier director Gary Weiss.
It’s a high point in Lew’s tumultuous relationship with Myer, and his tenacious attempt to claw back his power at the department store.
By 1983, Lew has built up a 10% stake in what was then Myer Emporium, landing the Coles Myer chairman position in 1991.
Four years later, he was ousted from the chair, and was booted from the board in 2002.
Lew started buying up shares again in Myer in 2017, and attempted a board spill in mid-2022, after building his holdings to 22.9% and repeatedly voicing his displeasure with how the company was being operated.
Once this deal is completed, Lew will be back on the board, the largest holder of both Premier, and Myer – of which Premier also holds the majority – plus he managed to hold onto Smiggle and Peter Alexander brands through Premier, as well as holdings in Breville.
“This is an opportunity for our team and our shareholders to play an important role in the future of the Australian and New Zealand retail landscape,” Lew said of the deal.
“Myer and our Apparel Brands will be stronger together – delivering vertical integration, scale, additional margins and loyalty opportunities.
“Meanwhile, Premier’s board will be focused on the ongoing growth and performance of Smiggle and Peter Alexander, including as they pursue local and international growth opportunities.”
Morgan Stanley said this deal is “a positive catalyst for Premier Investments shareholders” and the stock market agreed, with Premier shares leaping 18% – their biggest intraday gain since 2021 – before settling a 9.9%. Shares in Myer, however, fell 1.6%.
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