A cash offer of approximately £78.3 million has been made for independent TV shopping and online business retailer Ideal Shopping Direct (ISD).
The multichannel retailer, which this month announced strong trading figures for the last financial year, is set to be acquired by Cuba Bidco, a company formed by Inflexion Private Equity Partners.
The proposal will be made on the basis of 220 pence in cash for each ISD share.
A sale of the business has been on the cards for almost a year now after ISD announced it would be undertaking a strategic view of business operations last July.
Following the completion of the acquisition the business will be owned by funds either advised or advised and managed by Inflexion and its management team comprising ISD directors Mike Hancox and Ian Jebson, as well as proposed Cuba Topco Chairman David Hamid.
Commenting on today’s announcement, independent director Paul Wright said: “This proposal represents an opportunity for ISD shareholders to realise their investment in ISD at a significant premium to the share price immediately before the commencement of the current offer period.
“The proposal comes at a time when the macro environment and consumer spending outlook in the UK continues to remain uncertain, but in spite of this, the proposal fully reflects the fair value of ISD.”
John Hartz, Director of Bidco, said his company was pleased to be investing in the group, which is part of a “rapidly evolving multichannel retailing market”.
“We look forward to working with ISD’s accomplished management team and providing the necessary support for ISD to grow during the next phase of its development,” he added.
Like-for-like sales increased by 10.9 per cent year-on-year during the same period, while EBITDA was £8.4 million.
ISD owns TV channels such as Ideal World and Create & Craft, as well as the newly established pet store Animal Bargains.