Mike Ashley's Frasers Group has acquired a stake in electricals giant AO worth £75m.
The retail empire, which includes the likes of House of Fraser and Sports Direct, has bought all of the shares in the Bolton-headquartered group held by hedge fund Odey Asset Management.
The firm, which was set up by Crispin Odey, had previously built a stake of almost 20% in the listed group.
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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.
"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, added: "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."
The deal comes after it was confirmed that Mr Odey is to leave Odey Asset Management (OAM) following a series of allegations of misconduct.
In a statement, the executive committee of OAM said Mr Odey will "no longer have any economic or personal involvement in the partnership".
It follows a report in the Financial Times (FT), together with Tortoise Media, which included several allegations of sexual harassment or misconduct from women who either worked at the firm or had social or professional dealings with Mr Odey.
The statement, signed by chief executive Peter Martin and chief financial officer Michael Ede, said the firm investigated the allegations concerning Mr Odey but "cannot comment in detail as it is bound by legal obligations of confidentiality".
The statement said: "We, the executive committee of Odey Asset Management LLP, are announcing that Mr Crispin Odey is leaving the partnership.
"As from today, he will no longer have any economic or personal involvement in the partnership.
"Odey Asset Management Group Ltd will also cease to be a member and the partnership will now be owned and controlled by the remaining partners and managed as an independent legal entity.
"As we have said previously the executive committee takes all allegations of misconduct extremely seriously. The firm has robust policies and procedures that have been followed at all times.
"The firm has been investigating allegations concerning Mr Odey, but the firm cannot comment in detail as it is bound by legal obligations of confidentiality."
The allegations involve 13 women who claim that Mr Odey abused or harassed them, with eight of the 13 saying he sexually assaulted them.
The alleged incidents happened between 1998 and 2021, the FT reported, after interviewing 40 former employees at Odey Asset Management.
In a statement to the FT, Mr Odey described the claims as "rubbish".
On Thursday it emerged that the Financial Conduct Authority (FCA) is investigating the company and that banks are rethinking their relationships with the fund.
On Friday, asset manager Schroders cut ties with OAM and sold its remaining investment in the business, following the allegations.
The firm said on Saturday it has been "fully transparent with the regulator and kept them informed throughout this process".
The move by Frasers Group comes after it built up a stake in Manchester-headquartered fashion group N Brown.
It also acquired Manchester's Missguided and I Saw It First as well as Lancashire-based Studio Retail out of administration last year.
Frasers Group is also in talks to buy a brand from Manchester-headquartered THG.
In February, AO upped it annual earnings outlook for the third time in just over three months after it said its cost-cutting efforts were paying off.
The business said its profitability has seen a better-than-expected improvement as it drives cost savings thanks to a "resilient" customer base.
AO's share price closed on Friday, June 9, up 1% at 69.55p giving it a market capitalisation of £397m.
Its shares are up 33.75% in the year to date but down 2.52% in 2023 so far.
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