Moss Bros to be taken private in acquisition deal

Fri, 13 Mar 2020 | BUSINESS SALE



Menswear tailoring business Moss Bros is to be taken private in a £22.6 million deal by Brigadier Acquisition Company.

Brigadier is controlled by Crew Clothing owner Menoshi Shina and has agreed to pay 22p a share for Moss Bros, with the acquisition forecast to complete in the second quarter of 2020.

The purchase price comes at a premium of 60 per cent on Moss Bros closing price yesterday. The acquisition will be conducted through Shina’s Regiment Acquisition Company, Brigadier's majority stakeholder.

The board of Moss Bros has recommended shareholders approve the offer. However, Cavendish Asset Management, one of its biggest shareholders, has questioned the takeover.

Cavendish, which holds a 5 per cent stake, argue that the takeover is unwise, given the ongoing risk to supply chain and footfall posed by coronavirus.

In its recent half-year results to July 27, 2019, Moss Bros registered a 1.4 per cent increase in revenue to £65.4 million, backed by a 0.6 per cent year-on-year increase in in-store sales and a 20 per cent increase in online sales.

However, it also registered pre-tax losses of £2.7 million, compared to £1.7 million the year prior. According to the company, new IFRS 16 property reporting standards saw its profits hit.

Moss Bros chairman Colin Porter said: “In September, the board of Moss Bros set out its strategy to drive Moss Bros’ long-term performance and we have seen some early positive results which support the board’s confidence in Moss Bros as a standalone entity.”

“However, the board is also aware of the risks attached to executing this strategy in the current retail operating environment and as a publicly listed company.

“Having considered a range of strategic options, the board believes that the terms of the acquisition, which offers a premium cash exit to Moss Bros’ shareholders, fairly reflect the value of Moss Bros and its prospects, taking account of these risks.”


Share this article



Latest Businesses for Sale

Grocer & Florist
Hampshire, UK Wide

The business for sale is a dedicated retailer, providing warm and friendly customer service to ensure a satisfied and ever-increasing customer base. Great reputation with an established customer base. Well-established in the community, this business...

Asking Price: £150,000
Turnover: £400,000

LEASEHOLD


Online Electrical Appliance Sales & Repairs Superstore
West Midlands, UK

Very long established superstore with excellent e-commerce website offering extensive market-leading product range. Operates from spacious and superbly fitted triple parade showroom & workshop premises with huge volume of year-round 'walk in' trade o...

Asking Price: £995,000
Turnover: £330,834

FREEHOLD


Kitchen Interior Company
London, UK

Bespoke kitchen interior company. This is a fantastic opportunity to acquire a business that designs and manufactures a wide range of quality kitchens, furniture and other accessories for their loyal client base. Offers invited.

Asking Price: £600,000
Turnover: £750,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
24
 
May
 

Over 50 hotels and travel brands up for sale as leisure company collapses | ADMINISTRATION

The parent company of coach holiday company National Holiday...

 
22
 
May
 

Owner of Joe.co.uk enters administration | ADMINISTRATION

Joe Media Limited, the UK parent company of social news webs...

 
21
 
May
 

South London-based law firm acquired in pre-pack sale | BUSINESS SALE

Croydon-based McMillan Williams Solicitors (MSW) has been so...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources