The Very Group is preparing for a potential sale as it seeks the expertise of major banks to explore strategic options.
- Barclays, JP Morgan, and Morgan Stanley are being appointed to oversee a strategic review that might lead to a sale.
- The potential transaction could signify the conclusion of the Barclay family’s ownership of the ecommerce entity.
- Industry experts suggest a valuation of approximately £2.5bn, a decrease from a prior estimation of £4bn.
- There is speculation about refinancing possibilities, though a sale appears more probable due to interest in Very’s tech-focused financial services.
The Very Group, a prominent name in ecommerce, is reportedly engaging Barclays, JP Morgan, and Morgan Stanley to manage a strategic review. This move could mark the end of the Barclay family’s ownership, as they have held the company for numerous years. According to sources, these appointments are anticipated to be formalised within a few days, setting the stage for a complete or partial auction of the company.
Industry insiders have projected a potential sale price in the vicinity of £2.5bn. This represents a significant diminution from its previous valuation of £4bn, primarily attributable to shifting market conditions. The organisation, which owns well-known platforms such as very.co.uk and littlewoods.com, may attract considerable interest from entities keen on expanding their digital retail portfolios.
The company’s strategic review might also consider refinancing options, particularly given the involvement of major lenders like the Carlyle Group and Abu Dhabi’s IMI. Nevertheless, the likelihood of a sale seems higher, with prospective buyers drawn to Very’s sophisticated technology-focused financial services division, which complements its primary retail offerings.
Earlier this year, rumours circulated that the Carlyle Group might ultimately acquire the business, following an agreement to extend the maturity date for a segment of the group’s debt. This speculation was further fuelled by the appointment of former chancellor Nadhim Zahawi as Chairman of The Very Group, a role he assumed in May after succeeding Aidan Barclay.
The Barclay family, who put the company on the market in April to manage increasing debt burdens, have been advised to moderate their valuation expectations. This strategy underscores the financial challenges faced by the family in retaining ownership amidst sector-wide transformations.
The Very Group’s strategic endeavours highlight the dynamic nature of ecommerce financial dealings, signalling potential shifts in ownership and operational focus.
