In a significant development in the retail sector, N Brown faced a takeover proposal from the Very Group before agreeing to a family-led buyout.
- Very Group approached N Brown with a preliminary acquisition offer.
- This proposal came just before N Brown’s acceptance of a deal from its founding family.
- The market responded to the recommended £191 million offer, boosting N Brown’s shares by 40%.
- Frasers Group supported the Alliance family’s acquisition, foreseeing a strategic relationship.
In an unfolding event within the retail sector, N Brown was approached by the Very Group with a preliminary offer before the company consented to a take-private transaction orchestrated by a member of its founding family. This move by the Very Group, an online retail company, was reported to have occurred several weeks prior, marking a strategic interest in acquiring N Brown.
The Very Group’s offer reportedly fell short of the 40p per share tendered by N Brown’s non-executive, Joshua Alliance, which influenced the company’s decision to favour the family deal. The recommended buyout, valued at £191 million, led to a sharp increase in N Brown’s share value, which surged by 40%, underscoring market approval of the familial acquisition.
Meanwhile, the Very Group is engaging financial heavyweights Barclays, JP Morgan, and Morgan Stanley to conduct a comprehensive strategic review. This evaluation seeks to explore the potential sale of the business, signalling a possible shift in their operational strategy.
Adding another layer to the acquisition narrative, Frasers Group, a significant shareholder with a 20.3% stake in N Brown, voted in favour of the Alliance family’s purchase offer. Frasers Group expressed anticipation for a prospective strategic alliance, suggesting a long-term collaborative vision under the new ownership.
The sequence of these strategic moves highlights a pivotal moment for N Brown, reflecting shifts in corporate governance and market strategy.