World

Saturday 2 August 2014

Green hopes to offload 25pc stake in Topshop and Topman for £250m

Tara Black

Published 06/12/2012|05:00

  • Share

BILLIONAIRE Philip Green is close to selling a 25pc stake in Topshop and Topman to an American private equity firm in a move that will generate a multi-million-pound windfall for the retail tycoon.

  • Share
  • Go To

The colourful entrepreneur is in advanced talks to sell the stake in the high street chains to Leonard Green & Partners for as much as £250m (€308m).

A source close to the deal, which is not finalised but is expected to be announced tomorrow, said it would give Green a powerful war chest to "buy, deal and expand around the world".

The retailer, estimated to be worth £3bn, is driving an ambitious international expansion programme in America and Asia.

The deal also offers Green an alternative way of taking money out of his empire than as a dividend from Arcadia, the holding company that owns both brands as well as Dorothy Perkins, Burton, BHS and Miss Selfridge.

In 2005, Arcadia attracted controversy by raising debt to pay a dividend to its legal owner, Lady Green, the tycoon's Monaco-based wife.

Under the terms of the deal – first reported by Sky News – Arcadia would ring-fence the remaining stakes in Topshop and Topman from its other fashion business, which include Dorothy Perkins, Burton, BHS and Miss Selfridge.

Arcadia, which employs 43,000 people, recently reported a rise in pre-tax and pre-exceptional profits from £133m last year to £167m in 2011.

It does not report a breakdown of the performance of its individual chains but analysts say Topshop is the most profitable part.

Arcadia has bank debt of £308.9m and net debt of £445m.

Group debt peaked after the controversial dividend payment but two years ago Green vowed that the group would be debt-free by this year. At the time he said the debt would be cleared by the rapid growth of the company.

Indo Business

Read More

Classifieds

CarsIreland

Independent Shopping.ie

Meet, chat and connect with
singles in your area

Independent Shopping.ie

Meet Singles Now

Findajob

Apps

Now available on

Editors Choice

Also in Business