Shares in French Connection (LON: FCCN) soared on Monday morning after the group revealed plans to sell Toast for £23.3 million.
The fashion retailer will be selling it’s majority stake in the brand to Bestseller United, which owns several brands including Vero Moda.
Toast founders Jamie and Jessica Seaton are also selling their 25 percent stake in the group.
The price achieved for Toast reflects the strength of the brand and the business we have built behind it,” said Stephen Marks, chairman and chief executive of French Connection.
“French Connection will use the transaction proceeds to underpin its core business, allowing us to focus on our priority of returning to sustainable profitability and growth.”
“I would like to extend my thanks to all of the Toast management team for their commitment and dedication to the Toast business. We wish them every success in the future,” he added.
The sale is expected to be completed by the end of April. Toast’s chief executive, Suzie de Rohan Willner, will continue in the role after the deal has taken place.
Toast was founded by Jamie and Jessica Seaton in 1997 and has 12 shops in the UK. The group also sells its products online and through John Lewis (LON: JLH).
Shares in French Connection has climbed over the course of the year. The group’s full-year profits, which were revealed in March, reported an increase in revenue of 0.5 percent to £154 million.
