N Brown is poised for a pivotal transition as the Alliance family intends to take the company private.
- The offer for N Brown was made by Joshua Alliance, priced at 40p per share, marking a notable premium on its recent market value.
- With the Alliance family already possessing a significant stake, the deal’s success appears highly probable.
- The family cited limited trading liquidity and investor interest as reasons for the bid, seeking operational efficiencies away from public markets.
- The acquisition is anticipated to bolster N Brown’s strategic growth, leveraging its established brands and services.
N Brown, the home shopping group, is set for a significant transformation as the Alliance family aims to take it private with a £191 million offer. This move, articulated through Falcon 24 Topco, values shares at 40p each, which is a substantial premium over its latest share price of 27p and the average price, which has been below 20p over the previous year. The Alliance family’s involvement with N Brown is deep-rooted, with Joshua Alliance, a non-expectative director since 2020, leading this acquisition offer.
Joshua Alliance, having longstanding ties with N Brown, expressed his optimism about continuing the family’s historical support for the company. His father, Lord Alliance, served as chairman from 1968 until 2012, establishing a legacy within the firm. The Alliance family’s ownership of approximately 60% of N Brown’s shares makes the success of this acquisition highly probable. The family has expressed concerns regarding N Brown’s current market performance, pointing to very low trading liquidity and a lack of substantial investor interest in AIM-listed small-cap consumer stocks.
In their proposal, the Alliance family highlighted that N Brown is currently not benefiting from its public listing and is incurring significant costs due to its listed status. The independent directors of N Brown have indicated unanimous support for the offer, aiming to expedite the company’s strategic growth outside the public market sphere. This transition is expected to allow N Brown to accelerate its long-term growth strategy, offering access to additional capital, expertise, and resources, which the family’s private ownership could facilitate.
N Brown’s CEO, Steve Johnson, endorsed the bid, stating that it will enable the company to quicken its strategic initiatives for the benefit of its stakeholders. He emphasised the potential for growth that lies within N Brown’s portfolio of established fashion brands and its innovative financial services platform. Johnson expressed confidence that the acquisition will unlock N Brown’s potential more efficiently in the absence of the public market’s scrutiny and constraints.
The Alliance family’s acquisition of N Brown is poised to revitalise the company, leveraging its established brands and market position, focusing on long-term strategic growth.
