Change Capital Partners

Investors

Change Capital Partners has completed the secondary buyout of Republic in a £105m acquisition from 3i. Details of the deal’s financial structure have not been disclosed but it is understood that the transaction was supported by equal commitments of equity and debt by Change Capital Partners and Lloyds TSB Acquisition Finance. As a result of the deal, Change Capital Partners owns a controlling stake in Republic, having acquired management shares in the company as well as 3i’s minority stake.

The deal was completed on 19 October.

Company

Republic is headquartered in Knottingley, Yorkshire, and retails from 76 outlets across the UK. The company employs 1,200 people and was founded in 1992. Republic is a retailer of young adult fashion and offers brands such as G-Star, Replay, Bench and Hooch. The Company currently records turnover of £100m.3i acquired a 17% stake in the business following a £20m geared private placing in February 2004. An aggressive roll-out is intended for the company, involving opening stores in the top 200 towns and cities in the UK at a rate of 10-20 a year.

People

Steve Petrow and Roger Holmes led the deal for Change Capital Partners. Mark Blower and Noel Stubley coordinated the debt package on behalf of Lloyds TSB Acquisition Finance. Incumbent Republic CEO Tim Whitworth and buying director Carl Brewins remain with the company.

Advisers

Management- Ingram Forrest, Tim Simpson (Corporate Finance)

Debt – Eversheds, Nigel Dale, David Williams, Mark Holleran, Geoff Allen (Legal);

Management Horizons Europe, George Wallace (Commercial due diligence)

Vendor- Hawkpoint, Chris Darlington (Corporate Finance); Addleshaw Goddard, Younis Seedat (Legal); PricewaterhoouseCoopers, Nigel Ward, Stuart Whapples (Vendor due diligence).