Shares in N Brown received a lift after it snapped up online lingerie specialist Figleaves for £11.5m in cash, well below the speculated £40m valuation of the business.
IC TIP:
Buy
Although Figleaves is currently loss-making, analysts were highly supportive of the purchase, pointing out that it will strengthen N Brown's position as the leading online lingerie retailer and broaden its reach into a younger, wealthier demographic. They also believe that once integrated into N Brown's infrastructure, the acquisition could add £2m-3m of operating profit in the year to February 2012, even before the significant cross-selling opportunities that are likely to be identified.
