N Brown set to be acquired by the Alliance family
N Brown Group, the owner of Simply Be, JD Williams and Jacamo, is to be taken private by being acquired by a company owned by its non-executive director, Joshua Alliance.
Subject to shareholder approval, the sale is expected to complete in early 2025.
Alliance is offering 40p per share in cash in a deal which values the business at around £191 million. The Alliance family already owns around 60% of N Brown’s shares.
In a statement issued by N Brown, Joshua Alliance’s bid vehicle said the move was being made because “in light of N Brown’s current shareholder structure and very low trading liquidity, and the limited UK fund manager appetite for small cap consumer stocks, N Brown is not benefitting from being listed on the AIM market, whilst having to bear significant costs associated with its listing.”
Steve Johnson, interim executive chair and chief executive of N Brown, said the group’s directors intend to unanimously recommend the acquisition to shareholders.
He added: “N Brown continues to consistently serve its loyal and otherwise underserved customers, with exciting long-term prospects for the business.
“We continue to deliver on our strategy for growth, enabled by a sustainable and efficient operating model, and supporting our people and talent. Today’s announcement from Bidco will enable us to accelerate that strategy for the benefit of all our stakeholders”
Earlier this month, N Brown announced that it had posted a first half pre-tax profit of £0.2 million compared to a loss £2.8 million in the corresponding period in the prior year. However, group revenue fell by 6.7% to £277.2 million after trading was impacted by unseasonal weather.
