Moss Bros to be taken private in £22.6m deal
Suit retailer Moss Bros is on the brink of being taken private after the owners of Crew Clothing offered to buy it in a deal worth £22.6m.
Brigadier Acquisition Company offered to buy the high street chain for 22p per share, a premium of 60 per cent on yesterday’s closing price.
Crew Clothing owner Menoshi Shina has offered to buy the retailer through his Regiment Acquisition Company, which holds a majority stake in Brigadier.
The board has recommended that shareholders vote to approve the takeover offer.
Shina said: “We are delighted that the directors are recommending our offer to acquire the business, as we greatly admire the heritage and 169 year history of Moss Bros and the quality and determination of its existing management team.
“We believe that Moss Bros can have a bright future in the private arena and are excited to contribute our expertise and assist in delivering the current strategy.
“We see the acquisition as an opportunity to partner with an excellent management team to improve Moss Bros’ financial performance and protect its heritage, brand and presence on the UK high street.”
In January the retailer, which has struggled financially for several years, said it was making headway with its transformation plan.
The firm said it had made “good progress overall” in its bid to elevate the brand and improve long-term performance, despite reporting a dip in sales.
Today chairman Colin Porter said the board was aware of “the risks attached to executing this strategy in the current retail operating environment and as a publicly-listed company.”
Liad Meidar, managing partner of Gatemore Capital Management, which owns a 10.05 per cent stake in the retailer, said: “We are pleased with the proposed transaction to take Moss Bros private by Brigadier Acquisition Company, which represents an attractive premium.
“We are confident the proposed deal will provide management with the appropriate structure to execute the ongoing transformation plan and achieve Moss Bros’s potential to become a leading UK retailer.”