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N Brown taps investors for fresh capital after announcing a decline in H1 2020 results
Posted on Thursday, 05 November 2020 12:35
UK-based clothing and footwear digital retailer N Brown has announced a pre-emptive equity raise of GBP 100.00 million alongside new extended facilities to strengthen its balance sheet.
In addition, the fresh capital will allow targeted investments to accelerate delivery of growth strategy to capitalise on the structural tailwinds in the group’s markets.
The funding is fully supported by Lord Alliance of Management.
N Brown, which owns fashion brands Jacamo, SimplyBe and JD Williams, is looking for opportunities to derisk and accelerate its refreshed strategy by eliminating unsecured debt and bringing forward strategic investment.
NM Rothschild is acting as the lead financial advisor and joint sponsor along with Jefferies International as joint financial advisor.
In addition to the announcement, N Brown posted its financial results for the six months ended 29th August 2020.
During the first half of fiscal 2021, the group generated revenue of GBP 356.70 million, down 17.6 per cent to GBP 432.90 million in the same timeframe last year.
Adjusted earnings before interest, taxes, depreciation and amortisation totalled GBP 224.50 million in H1 2021 (H1 2020: GBP 282.30 million).
Steve Johnson, chief executive N Brown, said: “Having restructured the business and transitioned to more than 90.0 per cent of revenues from digital, we now see a clear opportunity to capitalise on various industry drivers, not least the increasing trend towards online retail, and further improve our customer proposition.
"The proposed capital raise will give us the firepower to invest further in our digital capabilities and accelerate our growth strategy, whilst significantly strengthening the group's balance sheet to provide us with ongoing flexibility and a strong platform from which to deliver returns for all of our shareholders."
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 29 deals targeting clothing and clothing accessories store retailers announced worldwide in 2020 to date.
In the largest of these, BooHoo acquired the remaining 34.0 per cent stake in Prettylittlething.com in a deal worth GBP 323.80 million.
Other targets included ASOS, FarFetch, BooHoo and Go Outdoors Topco.
© Zephus Ltd