Frasers Group, controlled by Mike Ashley, has proposed acquiring Hugo Boss for €2.7bn, offering €38 per share in cash to buy the remaining 74% stake it does not already own. The bid represents a modest 4% premium over the German fashion retailer's closing price, but allows Frasers to sidestep the uncertainty of when it might face mandatory acquisition rules under German law.

The UK retailer has steadily built its position in Hugo Boss over five years, starting with a 5% stake in 2020 as part of a broader strategy to move upmarket. Frasers now holds approximately 26% directly and has additional options that could give it majority control within two years. The relationship deepened when Frasers' CEO Michael Murray, who is Mike Ashley's son-in-law, joined Hugo Boss's supervisory board in 2024.

The €2.7bn valuation reflects Frasers' evolution from discount sports retailer Sports Direct into a premium lifestyle brand owner. The group has pursued similar strategies with other luxury partners, including acquiring nearly 6% of Puma earlier this year. Unlike previous stake-building exercises, this offer provides a clear path to controlling Hugo Boss without prolonged negotiations.

The financing for the deal is already secured through BNP Paribas, Deutsche Bank, NatWest and Standard Chartered, according to Frasers' statement. The offer values Hugo Boss at roughly €2 billion for the portion being purchased, representing a significant bet by Ashley on the German brand's future growth prospects.