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Sir Philip Green sells 25% stake in Topshop
Sir Philip Green, the owner of the Arcadia fashion group, has sold a 25% stake in Topshop and Topman to US private equity firm Leonard Green & Partners.
The transaction, which was completed yesterday, values Topshop and Topman at £2 billion.
In a statement, Green said that the deal will help the group to expand the Topshop and Topman brands further across the US and internationally. Arcadia currently operates three stores in the US and plans to open a further 20.
As a result of the deal, Arcadia Group now has no bank debt and is cash positive. Green said: "Being debt free gives us the balance sheet and flexibility to look at other opportunities to consolidate or acquire, either on our own or in partnership with LGP, who have substantial capital available in their new fund."
Leonard Green & Partners has a long history of investing in the retail sector. The firm's investments include Whole Foods Market, J.Crew, Neiman Marcus, Petco and The Container Store.
Green added: "This is a very exciting time for the Arcadia Group, with a clear strategy now in place for Topshop/Topman to become major global players. All of our other businesses will continue to be invested in and developed. We look forward to working with LGP as our new partner and also with all of our great long-serving executives and staff within the company."