N Brown Group is transitioning to private ownership under Joshua Alliance.
- The acquisition proposal is valued at £191 million, affecting shareholder stakes.
- Shareholders, including Frasers Group, are offered 40 pence per share in cash.
- Eligible shareholders can opt for shares in newly formed Bidco instead of cash.
- The acquisition aims to enhance N Brown Group’s growth and operational efficiency.
N Brown Group, a prominent name on the AIM market, is set for a transition to private ownership through a strategic acquisition by Joshua Alliance. The deal, valued at approximately £191 million, involves a cash offer that has been recommended by the independent directors of N Brown Group and Bidco, a company newly established by Joshua Alliance.
Currently, the Alliance family holds a controlling 53.4% of N Brown’s shares. With this acquisition, Joshua Alliance, who joined the board in December 2020, is poised to acquire the remaining shares, making a decisive step towards full ownership.
Shareholders of N Brown, including entities such as Frasers Group, which holds a 20.3% stake, will receive 40 pence per share in cash. As an alternative, eligible shareholders may choose to receive one unlisted ordinary share in Bidco for each N Brown share, which CEO Steve Johnson and CFO Dominic Appleton have elected for their respective shares.
The move to private ownership reflects on the low trading liquidity and minimal interest from UK fund managers in small-cap consumer stocks like N Brown. Bidco asserts that the costs of being listed on the AIM market outweigh the benefits, and this strategic shift aims to streamline operations and reduce these expenses.
Joshua Alliance articulated the vision behind the acquisition, stating it will bolster N Brown’s long-term growth, offering access to additional capital and resources necessary for its expansion. The sentiment is echoed by Steve Johnson, who noted that the transition would accelerate their growth strategy for the benefit of all stakeholders.
The full acquisition is slated to conclude by early 2025 pending shareholder approval, marking a significant shift in the business landscape for N Brown.
This strategic acquisition underscores a pivotal shift towards enhancing growth and operational efficiency for N Brown Group.
