Sir Philip Green has agreed the sale of a minority stake in Topshop and Topman to a US private equity firm, in a deal that values the British fashion chain at £2 billion.
The billionaire entrepreneur yesterday confirmed the £500 million all-cash sale of a 25 per cent stake in Topshop and Topman to Leonard Green Partners, a US private equity group with broad retail interests.
The partnership will enable the fashion chain to further its expansion into the lucrative US market, following a recent deal with department store chain Nordstrom to market Topshop and Topman clothing.
Topshop and Topman are widely considered the two jewels in the crown of Sir Philip’s Arcadia retail empire, whose other brands includes Evans, Dorothy Perkins and Miss Selfridge. The stake sale will enable Arcadia to pay off all of its £300 million net debt.
This is the first time Sir Philip has agreed to outside investment in his family-controlled group since he bought Arcadia for £840 million a decade ago. – Copyright The Financial Times Limited 2012
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