N Brown Group is to leave AIM after agreeing to a takeover by a group controlled by an existing shareholder and pursue its ambitious growth plans as a private company.
Falcon 24 Topco Limited, controlled by Joshua Alliance, has agreed to acquire N Brown Group plc in a recommended cash offer. The deal values N Brown at approximately £191 million, with shareholders receiving 40p in cash per share.
N Brown owns and operates outlets and websites including Jacamo, JD Williams and Simply Be.
The price represents a significant premium of 111.0% to the 12-month average closing price.
The acquisition will be implemented through a Court-sanctioned scheme of arrangement. Joshua Alliance currently owns 6.6% of N Brown’s shares, with other Alliance family members holding an additional 53.4%.
Falcon 24 Topco cites several reasons for the acquisition, including N Brown’s limited benefits from its AIM listing due to low trading liquidity and the costs associated with being public.
N Brown sees an opportunity to acquire well-established fashion brands and an innovative financial services platform. It appears they feel AIM can no longer support such ambitions.
The company asserts that N Brown can better achieve its growth potential as a private entity, considering market dynamics and the competitive landscape in the UK clothing and footwear market.