N Brown Group’s board has backed a £191 million takeover bid initiated by Joshua Alliance, aiming to acquire the entire company and enhance its growth potential.
- Falcon 24 Topco Ltd., owned by Joshua Alliance, plans to purchase N Brown’s entire share capital as it currently holds a significant interest in the company.
- The move to go private is seen as a strategic step to access additional resources and achieve growth away from public market pressures.
- N Brown’s current leadership and operations will remain intact, while the company adjusts its cost structure to remain efficient and agile.
- The acquisition is anticipated to complete by the first quarter of next year, marking a new chapter for N Brown in the UK retail sector.
N Brown Group, a Manchester-based e-commerce company, has received a £191 million takeover proposal from its non-executive director, Joshua Alliance. This bid is aimed at acquiring the entire share capital of N Brown in cash, with Joshua Alliance already holding a 6.6% stake and his family collectively controlling 53.4% of the company.
The acquisition proposal is led by Falcon 24 Topco Ltd., controlled by Joshua Alliance, who has been with N Brown’s board since 2020. Joshua Alliance, son of former Director and Chair Lord Alliance, expressed enthusiasm for continuing his family’s long-standing support for N Brown. He highlighted the transaction as a means to accelerate the company’s long-term growth potential by securing additional capital and resources.
The decision to take N Brown private stems from the belief that the company is not benefiting from its AIM market listing. The low trading liquidity and limited interest from UK fund managers in small cap consumer stocks have contributed to this perception. The acquisition is seen as an opportunity to leverage N Brown’s established fashion brands and innovative financial services platform, which are viewed as key growth drivers.
According to the company’s statement, Falcon 24 Topco aims to retain N Brown’s current executive team and leadership, ensuring continuity in its strategic direction. The board supports the acquisition, citing the challenging retail environment and the necessity for further funding to facilitate future growth. Interim Executive Chair and CEO Steve Johnson emphasised the importance of this strategic shift for delivering sustainable growth.
In preparation for the acquisition, N Brown is reviewing its operational costs to optimise efficiency, leading to some redundancies, including 105 positions proposed for elimination. The takeover completion is expected by the first quarter of the following year, setting the stage for a revitalised phase in N Brown’s evolution.
N Brown’s transition to a private entity under Joshua Alliance’s leadership represents a strategic effort to enhance growth and operational agility in the evolving retail landscape.