N Brown Group’s board endorses a £191 million takeover bid.
- Joshua Alliance proposes to acquire entire share capital of N Brown.
- The Alliance family currently holds a significant share of the company.
- The takeover aims to boost N Brown’s growth away from public markets.
- Current leadership of N Brown to remain post-acquisition.
The N Brown Group, a prominent ecommerce entity based in Manchester, has received a recommendatory approval for a £191 million takeover bid from Joshua Alliance, a non-executive director. The proposition entails acquiring the entire share capital of the company, a move backed by the Alliance family, which already holds a substantial 53.4% interest in N Brown’s shares. Joshua Alliance, who has been a board member since 2020, asserts this initiative is part of a continued legacy and strategic involvement in the company.
Joshua Alliance remarked on the family’s longstanding support for N Brown, stating, “My family have been supporters of N Brown for over half a century, providing capital and having been involved in the strategic leadership of the business. I am delighted to continue that history.” The proposed transaction is perceived as a means to expedite N Brown’s long-term growth and augment its operational capacity through additional resources and expertise.
The takeover bid is situated against the backdrop of a challenging retail environment and N Brown’s strategic evolution. Falcon 24 Topco, a company owned by Alliance, reasons that the company’s current diminutive trading liquidity and limited UK fund manager interest make listing on the AIM market less beneficial. The associated costs outweigh the advantages, thereby making the transition to a privately-held entity more appealing.
This acquisition expects the N Brown leadership, led by Interim Executive Chair and CEO Steve Johnson, to remain intact, ensuring strategic continuity. Johnson articulates the acquisition’s potential to accelerate growth strategies, emphasizing the company’s commitment to a sustainable and efficient operational model. His statement, “We continue to deliver on our strategy for growth, enabled by a sustainable and efficient operating model, and supporting our people and talent,” underlines this.
The acquisition is anticipated to finalize in the first quarter of the upcoming year. However, as part of its cost review process to ensure efficiency and sustainability, some positions within the company have been placed at risk of redundancy. This includes 105 roles slated for termination, primarily across head office and supply chain operations.
The takeover bid by Joshua Alliance is poised to steer N Brown towards enhanced growth opportunities in a private setting.
