N Brown is transitioning to private ownership in a £191m acquisition by the Alliance family.
- Joshua Alliance leads the acquisition at 40p per share, a premium compared to the last closing.
- The Alliance family already holds a significant share, ensuring acquisition success.
- The family cites low trading liquidity and limited investor interest as key concerns.
- The board unanimously supports the acquisition to leverage growth away from public markets.
N Brown, the well-established home shopping group, is set to transition to private ownership following a recommended £191 million offer from the Alliance family. This acquisition is led by Joshua Alliance, who proposes a buy-out at 40p per share. This price represents a notable premium over the company’s last closing price of 27p, as well as its average trading price, which has remained below 20p throughout the past year.
With the Alliance family already possessing around 60% of N Brown’s shares, the prospect of this acquisition achieving success appears almost certain. In their official statement, the Alliance family expressed concerns regarding the company’s present status, particularly highlighting the very low trading liquidity and the limited interest from investors concerning small-cap consumer stocks on the AIM market.
The central argument presented by the Alliance family suggests that despite N Brown’s potential, the company is not reaping sufficient benefits from its listed status. By incurring substantial costs, the listing is perceived as a burden rather than an asset. Consequently, the group’s independent directors intend to unanimously endorse the cash offer as the more advantageous route for the company.
Joshua Alliance’s long-standing involvement with N Brown underscores the commitment behind this acquisition. His insights, grounded in his experience since joining the board as a non-executive director in 2020, further the Alliance family’s history with the company. Joshua’s father, Lord Alliance, had a pivotal role from 1968 to 2012 as chairman. As the acquisition progresses, the Alliance family is strategically poised to leverage N Brown’s strong fashion brands and its innovative platforms to enhance market position.
In alignment with the overarching strategy, N Brown’s CEO, Steve Johnson, has articulated strong support for this acquisition. According to him, the bid from the acquisition vehicle will facilitate the acceleration of their long-term growth strategy, benefitting all stakeholders involved. This sentiment is echoed in the unanimous recommendation from N Brown’s independent directors, who view the acquisition as beneficial for shareholders and a strategic move to realise the company’s potential.
The acquisition by the Alliance family marks a significant transition for N Brown, positioning it for enhanced growth in the private sector.
