REPUBLIC OF CHANGE
Yorshire Business – 1 November 2005
Who? Knottingley based retail chain Republic, which operates 76 stores across the UK with trendy brands such as G-Star, Replay, Bench and Hooch as well as its own exclusive ranges. Did What? Been sold by 3i to Change Capital, the private equity firm founded by Luc Vandevelde, former chairman of Marks & Spencer. How much? Part of a £ 105m deal that sees Change Capital become the majority shareholder in Republic. 3i’s proceeds represent a money of multiple of 2.2 times and an internal rate of return of 80 per cent. Lloyds TSB Acquisition Finance provided senior debt and working capital facilities. What does this mean? 3i invested £15m of equity and debt in Republic in February 2004. The firm introduced Richard Tonks as chairman and helped the company strengthen its second tier management team. Over that time Republic has opened more than 35 new stores and almost doubled profits in a tough retail climate. Under Change Capital, Republic expects to open even more stores across the country.
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