N Brown Group is set for acquisition by Joshua Alliance in a take-private deal valued at £191 million.
- The acquisition involves N Brown’s non-executive director, Joshua Alliance, who also serves as the fourth largest stakeholder.
- Shareholders, including the Frasers Group, will receive 40 pence per share or have the option for an unlisted share in Bidco.
- The restructuring aims to accelerate growth and provide access to additional resources and expertise.
- The transaction is expected to conclude in early 2025, pending shareholder approval.
N Brown Group, a prominent name in the fashion retail sector, is poised for a significant transition as it prepares to be acquired by Joshua Alliance. This strategic move materializes in a take-private deal valued at approximately £191 million. The development was communicated by the independent directors of N Brown Group alongside Bidco, a newly incorporated entity under the control of Joshua Alliance.
The Alliance family, currently holding a commanding 53.4% share of N Brown, is central to this acquisition. Under this agreement, a 40 pence per share cash offer will be extended to the shareholders, including those associated with Mike Ashley’s Frasers Group, which possesses a notable 20.3% stake. As an option, eligible shareholders may opt to receive one unlisted ordinary share in Bidco for each share they hold in N Brown.
Joshua Alliance’s involvement with N Brown isn’t recent; he joined the board as a non-executive director back in December 2020, alongside his father, Lord Alliance. Joshua Alliance currently holds a 6.6% stake in the company, and through this acquisition, he plans to secure the entire share capital not currently under his ownership. This transaction is driven by the recognition that N Brown’s current shareholder structure, compounded by minimal trading liquidity and limited interest in small-cap consumer stocks among UK fund managers, hinders the benefits of being listed on the AIM market.
Commenting on the transaction, Joshua Alliance highlighted that the move will fortify N Brown’s growth potential over the long term. He emphasized the acquisition as a pivotal step to infuse the business with essential capital, expertise, and resources necessary for its future endeavors. Parallelly, CEO Steve Johnson voiced his approval, underlining that this acquisition aligns with the strategic growth initiatives that aim for a sustainable and efficient business model.
The entire process is slated for completion by early 2025, subject to the necessary shareholder approvals. All involved parties are optimistic that this acquisition will enhance value for stakeholders while positioning N Brown for a more prosperous operational trajectory.
The acquisition of N Brown Group by the Alliance family marks a strategic step to enhance growth and operational efficiency, pending shareholder approval early next year.
