Tycoon sells 25% stake in Topshop to US private equity firm

British entrepreneur Philip Green said Thursday that he has sold 25 percent of the fashion retail brands Topman and Topshop to US private equity firm Leonard Green & Partners for £500 million ($803 million, 620 million euros).

The transaction values the combined Topman/Topshop business at a total of £2.0 billion, Green announced in a statement, adding that the deal would wipe out debts and accelerate global expansion.

“I am pleased to announce that we have completed the sale of a 25-percent equity interest in Topshop/Topman Limited to Leonard Green & Partners (LGP),” said Green, whose retail company Arcadia has owned both brands since 2002.

US-based Leonard Green & Partners (LGP) already has investments in retail groups including Whole Foods Market, J.Crew, Neiman Marcus, Petco and The Container Store.

“Both Topshop/Topman and the rest of the Arcadia Group now have no bank debt and are in positive cash. All the funds received will remain in the Arcadia Group, enabling us to continue to drive all of our businesses,” Green said.

Topshop has been steadily increasing its international stores in recent years and has 615 franchised shops across 39 countries.

“Both the Topshop/Topman businesses are very cash generative, and with LGP alongside us, our plan is to step up our international investment programme as relevant locations present themselves in the USA and around the world,” Green added.

“This is a very exciting time for the Arcadia Group, with a clear strategy now in place for Topshop/Topman to become major global players. All of our other businesses will continue to be invested in and developed.”

Arcadia’s other British retail chains include Burton, Dorothy Perkins, Evans, Miss Selfridge and Wallis.