Tue, 08 Dec 2020 | BUSINESS SALE
Online shopping firm Studio Retail Group has announced that it is seeking a buyer as part of the company’s strategic review. The group, which formerly traded as Findel, is an online retailer of fashion, homeware and gifts through its Studio.co.uk site, as well as being the UK’s second largest supplier of equipment for schools.
Mike Ashley’s Frasers Group is Studio Retail’s majority shareholder, with a 37 per cent stake in the business, and is thought to have urged the company to launch a review of its business. Frasers reportedly contacted Studio Group in October to says that the company is “misunderstood” and therefore significantly undervalued.
In the wake of this, Studio Retail Group appointed investment bank Stifel Europe to explore the business’ options as it undertook a strategic review. Studio Retail says that second largest shareholder Schroders also supports the move.
The company said: “The board has now determined that it is an appropriate point to undertake a comprehensive review of the strategic options open to it in order to maximise value for shareholders.”
“These options include a sale of the group which will be conducted under the framework of a ‘formal sale process’ in accordance with the Takeover Code.”
The group has said it is not yet in contact with any potential buyers. While it is not known how much Studio Retail might sell for, the company rejected a £139 million takeover bid from Frasers in April, saying that it undervalued the business.
Frasers first acquired a stake and began retailing through the group in 2015 and has gradually built up its share in the business. Frasers and Schroder hold a combined stake of around 56 per cent in Studio Retail.
Studio Retail has seen a huge increase in sales this year as the COVID-19 pandemic has driven a boom in online shopping. Its half year results to September 2020 show underlying pre-tax profits rising 52 per cent to £17.7 million.
In the same period, group revenue rose 17.2 per cent to £268 million, compared to £228.7 million in the same period a year earlier. The company says that its strong online offering and improved infrastructure had enabled it to meet surging demand.
Find businesses for sale here.
If you are looking for an exit, we can help!
Supplies new and used motor vehicles, stocking an extensive range of cars to suit the budget requirements of a broad customer demographic. Regularly stocks a variety of prestigious brands, including Audi, BMW, Ford, Jaguar, Mercedes, Peugeot and Niss...
LEASEHOLD
An opportunity to acquire this fantastic garden centre set in approximately 1.25 acres which was established in 1977 and boasts an enviable reputation within the area. The owners are now seeking to take a well-earned retirement. Potential for younger...
FREEHOLD
The business benefits from a glowing online reputation, having been established for over 30 years, there is a significant amount of goodwill attached, with returning customers from within the town, and further afield. As well as a physical presence,...
LEASEHOLD
|
26
|
|
Sep
|
£1m-turnover Derry garden centre on the market for £1.25m | BUSINESS SALE
A £1 million-turnover garden centre in Derry has been ...
|
23
|
|
Sep
|
E-commerce software firm acquired at 11.5x EBITDA | BUSINESS SALE
Grafenia Plc, a listed business that operates a buy-and-buil...
|
22
|
|
Sep
|
August sees highest number of UK insolvencies this year | BUSINESS NEWS
A new analysis by risk and financial advisory firm Kroll has...
Sign up to receive our acquisition alert emails to get your FREE guide
|
01
|
|
Dec
|
Arcadia collapses into administration | ADMINISTRATION
Sir Philip Green’s Arcadia, the group behind retailers...
|
30
|
|
Nov
|
Arcadia retail empire on brink of collapse [updated] | BUSINESS NEWS
Sir Philip Green’s Arcadia group, which includes brand...
|
06
|
|
Nov
|
Frasers Group drops out of Debenhams sale | BUSINESS SALE
Mike Ashley's Frasers Group is no longer set to acquire...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources