Saudi Arabia-based retail platform Alhokair has teamed up with Arabian Centers Company (ACC), a mall operator in the Kingdom, to acquire a 51% majority stake in Vogacloset.
Vogacloset is a UK-based fashion e-commerce marketplace with a sizable market in the Middle East. According to the company’s own estimates, more than 12 million shoppers in the region regularly use Vogacloset to purchase apparel, accessories, and other fashion products.
Both buyers will first buy out 41.2% of Vogaclose’s existing shares. This deal will be based on a pre-money valuation of $60 million. Additionally, Alhokair and ACC will jointly invest another $12 million to help the e-commerce platform further expand its presence in Saudi Arabia.
With Alhokair and ACC integrating their brands into Vogacloset, the two entities will combinedly own a 51% stake in the fashion outlet.
Hanin Hamarneh, CEO of Vogacloset, reacted to the deal by saying, “Partnering with Alhokair and ACC in Saudi Arabia, our key market, is a strategic leap for Voagcloset. This partnership, and the new investment that it will bring, will support and accelerate the execution of our very ambitious growth plans in Saudi Arabia and the Middle East and will help us to rapidly expand the market for our suppliers’ products.”
The deal between all stakeholders ensures that Vogacloset will retain autonomy over its day-to-day management and operations.
“Our investment in an online fashion and beauty platform of Vogacloset’s caliber is a significant milestone in our transformation and represents an exciting opportunity,” said Marwan Moukarzel, CEO of Alhokair.