Saturday, February 29, 2020

Stake in Topshop & Topman sold


Fashion giant Arcadia Group has today confirmed the sale of a 25 per cent stake in Topshop and Topman to a US private equity firm.

Completed yesterday, the transaction with Leonard Green & Partners (LGP) found that the brands‘ value stands at £2 billion and Arcadia owner Sir Philip Green explained that all funds from the sale will remain in the group, “enabling us to continue to drive all our businesses.”

Last month, Arcadia announced full year results which revealed that pre-tax profit had surged 25 per cent to £166.9 million as its brands continue to expand into international markets.

The youth fashion brands are proving increasingly popular in the US, a development highlighted by the involvement of Hollywood actress Kate Bosworth in Topshop‘s festive ad campaign, which ditched teasers taking place last week to unveil the actress as the secret star of its short film.

LGP has a strong retail investment portfolio and has investments in J. Crew and Whole Foods Market among others and Green believes that the management teams‘ knowledge of retail state-side will aid his youth fashion brands in plans for global expansion.

Green commented: “Both the Topshop and Topman businesses are very cash generative, and with LGP alongside us, our plan is to step up our international investment programme as relevant locations present themselves in the USA and around the world.

“This is a very exciting time for the Arcadia Group, with a clear strategy now in place for Topshop and Topman to become major global players.

“All of our other businesses will continue to be invested in and developed and we look forward to working with LGP as our new partner and also with all of our great long-serving executives and staff within the company.”