Retailer Noni B has expanded its network of stores to almost 600 after agreeing the purchase of the James Packer-backed fashion chain Pretty Girl.

The deal values the target at $74.7 million, with the acquisition price potentially expanding a further $7.3m depending on sales at Pretty Girl through the coming two financial years.

The agreement largely comes in the form of cash, although it also includes a share placement to Pretty Girl seller Consolidated Press Holdings — Mr Packer’s private investment firm — worth $9.7m that is priced at the same 21 per cent premium as the planned capital raising.

Pretty Girl recorded a profit of $7.6m last year, meaning the deal values the group around 10 times earnings.

The result was the best performance in several years, with its network of Rockmans, BeMe and W. Lane brands now added to Noni B’s eponymous store network.

The deal came in at almost double Noni B’s market value, leading the acquirer’s managing director Scott Evans to label it “transformational” for the ASX-listed retailer.

“The expanded brand portfolio and our significantly increased store footprint create the opportunity to invest strategically in customer experience and omni-channel, to drive additional growth and profitability for the group,” he said.