Saudi Arabia’s public investment fund (PIF) is to take a 40 per cent stake in the company behind Brown Thomas and Arnotts.
The fund said in a statement it had struck a deal with Thailand’s Central Group to jointly own Selfridges Group — the parent company of the two Dublin department stores, as well as Selfridges in London. In total, it owns and operates 18 department stores in the UK, Ireland and the Netherlands.
The deal comes after Central Group’s partnership with Austrian mogul René Benko fell apart last year.
“Brown Thomas Arnotts confirms that Saudi Arabia’s Public Investment Fund will acquire a minority stake in Selfridges Group, alongside majority shareholder Central Group, reflecting confidence in the business as it continues to expand globally,” said a Brown Thomas Arnotts spokeswoman in a statement.
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[ Thai investor takes control of Brown Thomas and ArnottsOpens in new window ]
Central Group took over Mr Benko’s stake in November after his Signa Group was forced into a restructuring before it ultimately collapsed. In the short term, the deal ends any uncertainty around the business after Mr Benko’s empire collapsed.
PIF has become one of the most high-profile investors in the world in recent years, backing everything from the breakaway LIV golf tour to Riyadh Air. Still, this is one of its first big investments with a direct Irish connection. It is one of the biggest sovereign wealth funds in the world and has assets worth about $925 billion (€843.3 billion) under its management, according to its website.
The deal comes on the heels of what has been a strong year for Brown Thomas Arnotts. Revenues rose by 6 per cent last year to a record €337.3 million but it was dragged into the red by non-cash finance and tax charges relating to a sale-and-leaseback property transaction.
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Latest accounts for Brown Thomas Arnotts Ltd show it made an operating profit of €7.6 million in the year to the end of February 3rd, 2024. This was up on the €6.3 million figure of a year earlier.
Current trading is “quite good, we’re up 3 or 4 per cent on last year”, chief executive Donald McDonald told The Irish Times in September.
[ Brown Thomas Arnotts posts record revenues despite lost income from Dublin riotsOpens in new window ]
“Through this partnership, PIF will hold 40 per cent of both Selfridges Group’s operating and property companies, with Central Group owning the remaining 60 per cent. The deal includes new investment by both PIF and Central to strengthen Selfridges Group’s position and support future development,” said PIF in a statement.
“This partnership aligns with PIF’s strategy of investing in key strategic sectors globally and is underpinned by a shared vision to unlock further value in Selfridges Group. By combining PIF’s investment capabilities with Central Group’s industry leadership, this collaboration will accelerate the growth of Selfridges Group, cementing its position as a leading force in European luxury retail,” it added.
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