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N Brown’s board of directors has confirmed that the FCA has given the go ahead for a £191m takeover deal that will see Joshua Alliance acquire the brand.
As previously announced on 17 October, Alliance will pay 40p in cash for each N Brown share.
The company already owns 6.6% of N Brown, while the other members of the Alliance family own a controlling 53.4% stake.
The announcement of a recommended acquisition came 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.
Furthermore, shareholders said they believe that the 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.
At the time of the announcement, 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 resources 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.”
