Shein has bought British fast fashion brand Missguided from the Frasers Group as the company looks to expand its market share and global reach ahead of a rumored U.S. initial public offering, the companies announced Monday. 

The acquisition will see Shein manufacture Missguided’s products and sell them on both companies’ websites as an independent brand, while Frasers will retain Missguided’s real estate and employees, according to news releases. 

As part of the deal, Shein will license Missguided’s intellectual property to Sumwon Studios, a joint venture between Shein and Missguided founder Nitin Passi. Sumwon will manage and operate the Missguided brand.

The terms of the deal were not disclosed. 

The acquisition comes just over a year after the Frasers Group bought Missguided out of administration, or the British version of bankruptcy, for £20 million ($24.3 million). 

The brand gained prominence when it went viral for selling £1 bikinis and became a major player in British fast fashion. But it later found itself in dire financial straits and could not pay its suppliers.

Shein’s acquisition of Missguided comes as the company looks to expand its marketplace model and offer a broader range of products to its 150 million customers. The deal will allow Shein to grow its market share and deepen its global penetration.

Missguided’s assortment is similar to lines carried by its new parent company because the brand is focused on the latest trends and skews lower in price. Even so, its products can be more expensive than Shein’s, and could attract a different demographic. 

“The joint venture we have entered ushers in a new format of partnerships for Shein,” Donald Tang, Shein’s executive chairman, said in a news release. “Shein aims to reignite the Missguided brand, capitalising on its unique brand personality, and fuelling its global growth through SHEIN’s on-demand production model, unparalleled e-commerce expertise and global reach.”

Last week, Shein announced plans to launch a co-branded clothing line with former rival Forever 21 after the two retailers partnered up in a joint venture earlier this year. Under the agreement, Shein took a stake in Forever 21’s operator Sparc Group, which includes brand management firm Authentic Brands Group and mall owner Simon Property Group. Shein also began selling its clothes in Forever 21’s stores.

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