Jacques Vert have agreed to be taken over by Sun Capital, the private investment firm from the US for around £41.2m, almost a month after a full year profit warning was released by the British fashion retailer. Retailers in Britain are very nervous about consumer spending in the key Christmas period, due to a string of profit warning from such companies as Game and French Connection.
Minerva Bidco is from Monerva Holdco, Sun Capitals affiliate, spoke of the deal and said that whilst Jacques Vert were well placed to deliver further growth, the current economy still looked unstable, and it was this background that caused the board of Jaques Vert to seriously consider this offer.
Jacques Vert encompasses many brands including its namesake label as well as Precis, Windsmoor and Planet, but still posted a 26% fall in their pre-tax profits of £2.3m for the 6 months ending in October, and their sales were nearly flat at £56.4m. The recommended offer of 21p per share represents a premium of 68% to the stocks of Jacques Vert at the close of play on Friday.