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Philip Green confirms Topshop and Topman deal

Arcadia boss Sir Philip Green has this morning confirmed that he has sold a 25% stake in Topshop and Topman in a deal which values the business at £2bn.

In a statement issued by Green, he verified the news which broke on Tuesday evening, that he has sold 25% of the business to US-based private equity firm Leonard Green & Partners (LGP).

According to Green, as a result of the transaction both Topshop, Topman and the rest of the Arcadia Group now have no bank debt and are in positive cash.

“All funds received will remain in the Arcadia Group, enabling us to continue to drive all our of our businesses,” said Green.

“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.”

LGP, founded in 1989, has invested in in 62 companies and has raised more than $15bn (£9.3bn) of private equity capital since it launched.

Companies that it has invested in include American casualwear giant J Crew as well as upscale US department store chain Neiman Marcus.

Green added: “Having had extensive dialogue over several months, the Board felt that LGP becoming our partner would be extremely beneficial.”

“Their experienced management teams and knowledge of retail in the USA will greatly assist Topshop and Topman with their global expansion.

“This is a very exciting time for the Arcadia Group, with a clear strategy now in place for Topshop and Topman to become major global players. All of our other businesses will continue to be invested in and developed.”

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