Retailer Republic bought out for £105m

YORKSHIRE retail chain Republic has been bought by a private equity firm run by the former chairman and chief executive of Marks & Spencer in a deal worth £105m.

The Knottiingley-based group, which operates 76 stores across the UK selling fashion clothing for young adults, has been acquired in a buyout by Change Capital Partners, founded by Luc Vandevelde, chairman of French retail giant Carrefour and formerly of Marks & Spencer.

The deal sees Republic's chief executive Tim Whitworth and buying director Carl Brewins reinvesting in the company and the retirement of finance director Ron Scott and the exit of venture capital company 3i.

The deal, in which Yorkshire-based corporate finance boutique Ingram Forrest was a key player, is the fourth completed by Change Capital since it was founded in 2003 and will see its director Roger Holmes, the former chief executive of Marks & Spencer and Kingfisher, becoming involved in the business.

Republic, which offers brands such as Bench, Hooch, Replay and G-Star, as well as up and coming niche brands and its own exclusive range, has opened 36 new stores in the last two years, taking sales to £100m.

Mr Holmes said Republic was great business which could grow by driving sales in the existing portfolio and by opening new and larger stores across the UK.

"There are plans to open stores in the top 200 towns and cities in the UK at a rate of between 10 to 20 a year. It has fashionable and hot brands and we're looking forward to working closely with them," he said.

Mr Whitworth, said: "I and the team at Republic are ambitious to take the company to the next level and believe that we have the right partner in Change Capital to achieve this.  "We have deliberately sought an external investor who really understands our business and can help us achieve our ambitions, over and above bringing purely financing."

Steve Petrow, managing director of Change Capital, added: "In a difficult retail climate in the UK, Republic stands out as a star in its sector."

Tim Simpson of Ingram Forrest Corporate Finance in Leeds, who advised Change Capital, said: "We structured the original 3i investment and have involved with Republic since then. This deal is about the right people to partner with Republic. With Change Capital you have people who have been where this business wants to be."

3i invested £15m of equity and debt in February 2004 and its proceeds from the deal represent a money multiple of 2.2 times and an internal rate of return of 80 per cent.

Phil Greves, 3i investment director, commented: "Republic has been a very successful investment for us."

Lloyds TSB Acquisition Finance provided senior debt and working capital facilities to support the transaction, continuing a 20-year association with Republic.