An affiliate of Sun European Partners, LLP (“Sun European Partners”) has today announced the acquisition of Alexon Group Plc (“Alexon”), the womenswear clothing retailer.
Headquartered in Luton, UK, Alexon began trading in 1929 and now operates from 990 outlets across the UK and Europe. It also retails online with significant growth being driven through each of the online stores of its seven brands. The Group operates in a niche market predominantly focused on the more mature female demographic.
Following a thorough and competitive auction process and a review of the options facing the business, the board of Alexon believes that an affiliate of Sun European Partners is best–positioned to support the company’s business plan, providing a solid platform for improved financial performance. The deal is expected to preserve over 2,700 jobs.
Jane McNally, Chief Executive Officer of Alexon said, “We are extremely pleased to have a new owner which gives our business the more appropriate capital structure that we have been seeking. The capital investment the Sun European Partners affiliate will be making in Alexon as part of this transaction will enable us to invest further in our turnaround strategy which is focused on restructuring our store portfolio, the roll out of new retail environments and further acceleration of our e–commerce business. We will also benefit from their extensive and successful track record in this sector.”
Paul Daccus, Principal of Sun European Partners said, “Alexon has strong brands which operate in a growing segment of the retail sector and this is an exciting acquisition. The turnaround programme pursued by the business to date has improved performance and returned the business to profitability. We look forward to partnering with Jane and her management team to build on this progress to achieve sustainable growth and help the company to expand its routes to market, whilst continuing to invest in its market leading brands.”
Sun European Partners has significant retail and branded retail experience and counts among its affiliated portfolio companies a number of other leading businesses including, V&D, the largest department store chain in The Netherlands; DBApparel, a market leader in the design, manufacture and distribution of branded intimate apparel; and Scotch & Soda, a designer, marketer, wholesaler and retailer of contemporary casual apparel. In the United States, Sun Capital affiliates have invested in The Limited, a women’s specialty apparel and accessories retailer; Hanna Andersson, a retailer of distinctive children’s clothing and Gerber Childrenswear, a leading marketer of children’s apparel.
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