Wirth, who joined the department store as executive chair last year, has been spearheading the push for the acquisition since June as part of her plans to grow the store’s portfolio of private-label exclusive brands.

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In a briefing with analysts and investors on Tuesday morning, Wirth pitched the proposed deal as a way to improve profits, enhance investment and leverage Premier’s extensive global supply base.

“The footprint of 783 stores will increase access to a greater proportion of the population,” Wirth said.

“Our combined e-commerce offerings create scale and deliver a much stronger and compelling omnichannel offering. The combined group will have an enhanced scale and revenue, therefore improving our operating leverage. It also delivers a stronger balance sheet and a greater capacity to invest in growth.”

The acquisition will add 719 stores to Myer’s footprint of 64 stores, and is projected to take its sales from $3.2 billion to $4 billion, and lift its profits from $160 million to $250 million. Wirth said none of the stores would be shut down or staff made redundant, adding Myer was buying the brands to grow.

Premier is a bigger business than Myer, with a market capitalisation of $5.5 billion, compared with Myer’s $800 million. Its Apparel Brands make up nearly half of Premier’s total sales, but sales across those stores all slid in 2024, in what has been a difficult time for retailers as cost-of-living pressures continue to bite.

The announcement came just a day after Mosaic Brands, Australia’s largest women’s fashion retailer group behind brands such as Katies and Rivers, entered voluntary administration.

Wirth said the retail environment remained tough and patchy.

“Customers are very conscious of purchases they’re making,” she said. “As we move into [the second quarter], it’s obviously a very important time for retailers, and we make sure we’re ready to participate in retail activity around Christmas time.”

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Shares in Myer fell 1.5 per cent at midday, while Premier Investments jumped 10 per cent. The deal is dependent on investor approval, with shareholders expected to vote on the transaction at meetings in late January, the companies said.

“This is an opportunity for our team and shareholders to play an important role in the future of the Australian and New Zealand retail landscape,” Lew, who has had his eyes on Myer for decades, said in a statement to the market.

Myer investor and former founder of Swisse Vitamins Michael Saba, who owns millions of shares and had previously railed against Lew’s attempts to control the department store’s board, welcomed Tuesday’s announcement and said he would vote in favour of the proposed deal.

Saba said he was a “reformed man” on his views on Lew, adding the 79-year-old billionaire had “mellowed” as he got older.

“Solly is a better person, better leader, and he understands the dynamics of empowering and not being a micromanager … and he is an amazing talent in retail,” Saba said.

“He’d be an amazing contributor to Myer because he hates to fail. I used to say to him he’s like a grumpy old uncle, but he’s not a grumpy old uncle any more. He’s calm, very talented and a professional who can add value to the board.”

E&P analyst Kade Madigan said Myer had noted there would be the potential for $30 million of savings for the combined business, which he said would come from improved purchasing power and a reduction in the cost of doing business for Apparel.

“We expect this to be a key focus of the call. Based on these synergies, the additional $76 million in earnings and the 890 million new shares issued, we estimate that the [earnings per share] uplift for Myer to be [about] 28 per cent,” Madigan said.

“The value creation that this represents for Premier shareholders is dependent upon the multiple that the new business will trade on.”

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