The £191m acquisition of N Brown by Joshua Alliance marks a key moment for the retail conglomerate.
- The offered price of 40p per share presents a notable premium over recent price averages.
- Ownership of approximately 60% of shares by the Alliance family secures the acquisition.
- Concerns regarding N Brown’s market listing and trading liquidity are highlighted in the takeover.
- The Alliance family aims to boost growth, leveraging N Brown’s established brands and services.
N Brown, known for its ownership of brands like Jacamo and Simple Be, is set to join the Alliance family through a substantial £191m takeover offer from Joshua Alliance. This move includes a cash offer of 40p per share, significantly higher than the last closing price of 27p and the average price below 20p over the past year.
The takeover appears highly probable as the Alliance family, already holding 60% of N Brown’s shares, backs it. Lord Alliance, a long-time influencer and former chairman, supports the proposal and retains a 33.41% share in the company.
In their announcement, the Alliance family expressed their concern for N Brown’s “very low trading liquidity” and a lack of investor enthusiasm for smaller-cap stocks like those on the AIM market. They suggest that the company endures considerable costs from its current listing status without sufficient benefits.
The board of independent directors at N Brown is in unanimity regarding the acceptance of this cash offer, reflecting confidence in the strategic advantages that it could entail for the company and its stakeholders.
Joshua Alliance has been actively involved with Jacamo since 2014 and joined N Brown’s board as a non-executive director in 2020. His history with the company, combined with that of his father, Lord Alliance, points to a long-standing commitment and strategic involvement in guiding the company’s direction.
Looking forward, the Alliance family plans to capitalise on N Brown’s well-developed fashion brands and its innovative financial services platform to strengthen its market position. Joshua Alliance remarked that the acquisition would support the company’s growth by providing access to “additional capital, expertise and resource.”
N Brown’s CEO, Steve Johnson, supported this sentiment, indicating that the acquisition would enable better strategic execution, benefiting all stakeholders. The independent board’s intention to endorse this offer reaffirms their belief in its benefits.
The acquisition is poised to transform N Brown, providing new avenues for growth and success under the Alliance family’s leadership.