Frasers Group buys stake in AO

Online electricals retailer AO has announced Frasers Group plc has acquired an 18.9% stake in the company, for £75m. 

12 Jun, 23

Online electricals retailer AO has announced Frasers Group plc has acquired an 18.9% stake in the company, for £75m.

Frasers Group buy stake in AO

The investment is the culmination of talks, over two years, about establishing a strategic partnership with the business which owns the likes of House of Fraser, Flannels, Sports Direct and Sofa.com.

Michael Murray, CEO of Frasers Group, said: “Frasers has long admired what John and the AO team have built, and we are delighted to have the opportunity to form a supportive, strategic partnership.

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“AO is a fantastic business with a clear strategy which is leading the market in online-only electricals.

“Through this investment, Frasers will benefit from AO’s valuable know-how in electricals and two-man delivery, helping us to drive growth in our bulk equipment and homeware ranges.

“In turn, AO will have the opportunity to benefit from Frasers’ expertise and ecosystem.”

John Roberts, founder and CEO of AO, said: “This is great news for AO and a fantastic endorsement for our business.

“We are delighted to welcome Michael and the wider Frasers team into the AO family and look forward to realising the significant potential that we see for this partnership.

“As we continue to build on our strategy of pivoting to profitable growth, it will be hugely exciting to have a range of compelling strategic opportunities to explore together, and we’re very much looking forward to working with Michael and his team.”

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