N Brown agrees £191m takeover deal by Alliance family

N Brown has agreed to a £191m takeover deal that will see Joshua Alliance, a member of the group’s founding family, acquire the company. Alliance, currently a non-executive director of N Brown, made a cash offer of 40p per share through his newly formed company, Falcon 24 Topco. 

He already owns 6.6% of N Brown, while the other members of the Alliance family, including former chair Lord David Alliance, own a controlling 53.4% stake.

N Brown said its independent directors intend to recommend the offer unanimously.

It comes as the bidding company said N Brown was not benefitting from being listed on the AIM market thanks to its current shareholder structure and “very low trading liquidity”, as well as a limited UK fund manager appetite for small cap consumer stocks.

In addition, it argued an acquisition “presents an opportunity to acquire a portfolio of well-established fashion brands, supported by an innovative financial services platform that is currently under development, with a long history and heritage in the UK clothing and footwear market”.

Commenting on the acquisition, Joshua Alliance said: “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. This transaction will support N Brown in accelerating its long-term growth potential and provide, where needed, access to additional capital, expertise and resource to accelerate the longer-term potential of the business. 

“In the business’ current cycle of evolution, we will be able to achieve this growth potential more successfully away from the public markets. I am excited about the opportunities created by this portfolio of well-established fashion brands, supported by an innovative financial services platform and its talented executive team and employees.”

Steve Johnson, interim executive chair and CEO of N Brown, 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. The N Brown independent directors are therefore unanimously intending to recommend it to our shareholders.”