The move aims to unlock N Brown's growth potential by transitioning the company to private ownership. N Brown has been a public company for more than 50 years.
The N Brown Group in the United Kingdom announced that it has agreed to be acquired by Falcon 24 Topco Ltd (Bidco), led by Joshua Alliance, a member of its founding family, in a $249.3 million deal. The move aims to unlock N Brown's growth potential through its transition to private ownership. Shareholders will receive 40 pence per share in cash, with the alternative of receiving unlisted Bidco shares.
Shareholders will receive 40 pence per share in cash, a significant premium over recent trading prices, with the alternative of receiving unlisted Bidco shares.
“The combined impact of recent macroeconomic headwinds, changes to capital structure and reduced appetite for UK small cap stocks have significantly reduced liquidity, with consequent impacts on the N Brown share price” , says the document.
“More recently, the business has faced more challenging market conditions and the impact of cost of living pressures which have been evident in customer purchasing behaviour,” he added.
Founded by Nathan Brown in 1964, the company was purchased in 1968 by the Alliance family. N Brown owns brands such as JD Williams, Simply Be and Jacamo.
Joshua Alliance, who is a non-executive director of N Brown, already owns 6.6 per cent of the company, while other members of the Alliance family, including Lord Alliance, own a controlling stake of 53.4 per cent. Mike Ashley's Frasers owns 20.3 per cent of N Brown.
Fiber2Fashion News Desk (DS)
