Links and Latham lead on Topshop stake sale to US private equity firm

Latham & Watkins and Linklaters have won lead roles as UK retail billionaire Sir Philip Green agreed to sell a 25% stake in high street fashion stores Topshop and Topman to US private equity firm Leonard Green & Partners (LGP).

The deal sees Green’s Arcadia group, which also includes chains such as Bhs, Burton, Dorothy Perkins and Miss Selfridge, sell the minority stake in Topshop and Topman to LGP for £350m.

Green will retain control of Topshop, with the deal billed as a way to increase its presence in the lucrative US clothing market. Some of the funds will be used to clear Arcadia’s debt.

Linklaters took a first-time instruction for Arcadia on the sale, fielding a team led by corporate partner Owen Clay alongside corporate managing associate Michelle Bennett.

Last year Clay was part of a Linklaters team advising Glencore on its high profile initial public offering on the London Stock Exchange.

Meanwhile, Latham advised long-term client LGP, with London corporate partner Graeme Sloan working alongside New York private equity partner Howard Sobel and London associate Katie Campbell. The firm also provided advice on intellectual property, tax, finance, employee benefits and compensation, antitrust and real estate matters.

In 2008, Sloan, along with London managing partner Nick Cline, advised Qatar Holding on a cash injection into Barclays bank.

LGP has previously made investments into other retail brands in the US including the J.Crew fashion brand, Neiman Marcus Group and Whole Foods Market.

Green tookover Arcadia in 2002 in a deal in which he took advice from Allen & Overy.