High St fashion chain New Look has been bought by a South African investment company, ending months of speculation about its future.

The two companies announced Brait SE will acquire 90 per cent of the business for about £780 million, primarily with funds advised by current PE owners Apax Partners and Permira. The balance will be owned by the Singh family interests and current management.

CEO Anders Kristiansen, CFO Mike Iddon and CCO Roger Wightman will remain with the company.

Brait says the transaction values the business at about £1.9 billion.

Over the past 11 years, under the Apax and Permira Funds’ ownership, New Look has gone through a significant transformation and is now a leading fast fashion retailer in the UK for under 35s with more than 800 stores worldwide. Brait says New Look is attractive for its double digit EBITDA growth in recent years, solid cash flow, established UK footprint in the higher growth value segment of the apparel and accessories market, its leading UK market value share, strong growth prospects in France, Germany, Poland and especially China, strong brand awareness and well developed multi-channel offer.

New Look has net financial debt of about £1 billion.

“Brait and New Look’s management are comfortable with the company’s current leverage ratio given its strong cash flow generation. Subject to market conditions, the company will review financing alternatives in order to optimise the capital structure within the same leverage range,” the two companies said in a statement.

Kristiansen said Brait has a track record of long-term and supportive investments and gives New Look “the perfect platform” to continue the strategy of growing the New Look brand in the UK, Europe and China.

John Gnodde, Brait CEO, added: “We have been highly impressed with the management team and look forward to partnering with them.”

Mike Garland, Permira partner said: “After 11 years of successful partnership, the New Look brand is stronger than ever and the company’s ecommerce and international operations are showing significant growth. We are very pleased with what we have achieved together and wish the New Look management team every success for the future.”

New Look was advised by Goldman Sachs International.