Mosaic Fashions to acquire Rubicon Retail for £353m

27 Jun '06

4 min read

It is proposed that the deal will be funded through the issue of new shares and in cash. When appropriate, the Board of Mosaic Fashions will propose to its shareholders at a meeting that its share capital be increased to the level necessary to finance the share for share exchange, with each share in Mosaic Fashions being valued at ISK 15.3 (£0,1112). At this stage it is envisaged the transaction will be completed within the next three months.

The combined group will trade under the name Mosaic Fashions and will maintain a listing on ICEX after the merger. It will be headed up by Derek Lovelock, CEO and Richard Glanville, Finance Director. Don McCarthy and Stefan Cassar will remain with the combined group as advisors for the foreseeable future.

The majority of the share capital of Rubicon Retail is owned by members of the management team, Donald McCarthy, Stefan Cassar and John Egan. Other shareholders include Kaupthing Bank and Baugur Group.

Commenting on the potential acquisition, Derek Lovelock CEO of Mosaic Fashions, said: "Rubicon has a strong portfolio of fashion brands which operate in a sector of the market that we know well. Our strategy is to build a profitable, multi-branded fashion group and the Rubicon business would be an excellent fit with our own four design-led fashion brands. This compelling transaction would provide the combined group with an even stronger position in the UK retail sector, as well as providing significant opportunities for future growth internationally."

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