Department store giant Myer has proposed a merger with Premier Investments’ apparel business.

Under the proposed merger, Myer would acquire Premier’s Apparel Brands division, which includes Just Jeans, Jay Jays, Portmans, Jacqui E, and Dotti. This division generated $845 million in revenue last financial year across 717 stores. In exchange, Premier Investments would distribute its 29 per cent stake in Myer directly to its shareholders, resulting in a more straightforward ownership structure.

The deal aims to create a powerhouse retail entity, combining Myer’s extensive network with Premier’s popular apparel brands.

Premier Investments acknowledged the proposal in a statement to the ASX, noting that it warrants further consideration. “The board’s focus in relation to the proposed transaction will be assessing the potential benefits for Premier shareholders, whilst maintaining the integrity and growth initiatives of its Apparel Brands business,” the statement read. Both companies have agreed to conduct reciprocal due diligence and discuss potential transaction terms.

Myer’s executive chairwoman, Olivia Wirth, emphasised that the merger is part of a strategic review aimed at unlocking value for Myer shareholders. “While Myer has one of Australia’s strongest retail brands, store networks, and loyalty programs, there is a significant opportunity to reinvest in our product offering, customer engagement capabilities, and further optimise our supply chain to achieve our full potential,” Wirth stated.

Myer proposes an all-scrip merger, meaning it would acquire Premier’s Apparel Brands by issuing new Myer shares to Premier. This would result in Century Plaza Investments, the private investment vehicle of Premier chairman Solomon Lew, becoming Myer’s largest shareholder.

Advisors for the deal include Barrenjoey Capital and Clayton Utz for Myer, and UBS and Arnold Bloch Liebler for Premier.

The merger comes as Premier Investments is working towards a separate demerger of its stationery business, Smiggle, and is exploring the sale of its pyjama store, Peter Alexander.

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