Close Brothers advised the directors of Austin Reed Group PLC ("Austin Reed"), the international clothing retailer, on its sale to Darius Capital Limited (“Darius”), a company formed for the purpose of acquiring Austin Reed backed by Guy Naggar and Peter Klimt, the owners of Dawnay, Day for £49 million at a price of 144p per share.
Close Brothers, who have advised Austin Reed since October 2000, advised the directors on the approach and achieved a 37 per cent. premium to the average share price of Austin Reed over the 12 month period prior to the approach from Darius.
Austin Reed has two brands, Austin Reed and CC. Austin Reed clothing is sold in the UK through 45 branded stores, 34 concessions and 18 outlet stores. CC is sold through 63 CC stores and 129 concessions in department stores, as well as through some Austin Reed stores. In addition, Austin Reed goods are sold through the Group’s website www.austinreed.co.uk|.
Internationally, Austin Reed operates licence agreements in the USA, Japan, Thailand, Singapore, Indonesia, Malaysia, Russia and India. Austin Reed merchandise is available from in the region of 1,000 stockists around the world.
Commenting on the transaction and Close Brothers' role, John Robins, non-executive Chairman of Austin Reed, said:
“Close Brothers’ performance was exemplary and I was particularly impressed with the availability of senior team members to assist with all aspects of the transaction, at all times. The Close Brothers team demonstrated a thorough understanding of all the issues, including complex pension matters”.
Stephen Aulsebrook, Chairman of Close Brothers, said:
“Our role in the transaction is an excellent example of how we add value, both through our extensive knowledge of the European retail sector and our deep experience in working with public companies. This transaction adds to our track record in the retail sector and we look forward to working with more retail companies to solve their strategic issues.”
The Austin Reed team at Close Brothers was Stephen Aulsebrook, Henry Wells and Giles Byford. To contact them please call Close Brothers on +44 (0)20 7655 3100.