Tycoon Mike Ashley looking to buy Manchester retailer in £139.2m deal
Mike Ashley is looking to take over Manchester based home shopping firm Findel in a £139.2m deal.
Sports Direct, which is owned by Mike Ashley, has increased its stake in the online retail and education specialist ahead of a potential takeover.
Findel saw its share price jump eight per cent this morning on the news.
The move is the latest in Mike Ashley’s high street spending spree which has included the purchase of House of Fraser last Summer. Following the purchase Mike Ashley struck a deal with Manchester City Council to keep open the department store’s Deansgate branch.
House of Fraser
The Newcastle United owner has bought a number of other retail brands such as Evans Cycles and Sofa.com.
In its statement to the Stock Exchange the firm said: “Sports Direct continues to recognise the value and quality of the Findel business, and sees the offer as an opportunity to give increased support to Findel to maximise the value of its existing business.
“The offer is as an effective way of expanding the commercial arrangements between Sports Direct and Findel, and giving Sports Direct increased exposure to the future growth of the Findel business.”
Findel Group is made up of Express Gifts and Findel Education.
In its most recent accounts, Findel posted revenues of £479m and profit before tax of £22.1m for the year to 30 March 2018.
Sports Direct has been an investor in Findel since 25 September 2015, holding 29.9 per cent.
The firm has unconditionally agreed to acquire six million shares at a price of 161 pence, taking its stake to 36.8 per cent and strengthening its hold.
As a result of the deal Sports Direct is required to make a mandatory cash offer for the Findel shares it does not already hold.
The proposed Sports Direct offer values Findel at approximately £139.2m.
Subject to completion, Sports Direct said it intends to work closely with Findel to expand its existing commercial arrangements for the benefit of both companies.
It stressed that it has “no intention to make any changes” to the future business of Findel, the continued employment of its staff and management, and its strategic plans, among other aspects of how the business operates.
The pair already have a partnership through Findel’s Express Gifts, which provides a personal shopping service to about 1.5 million customers a year.
A successful pilot-scale commercial test of Sports Direct-licensed clothing brands has been held on Express Gifts’ Studio.co.uk website.
