Hotter owner Unbound in discussions regarding possible takeover by WoolOvers Group

Unbound Group, the owner of the Hotter Shoes brand, has confirmed it is in discussions with WoolOvers Group “in relation to a possible cash offer" for the entire issued share capital of Unbound.

Under the terms of the possible offer, Unbound shareholders would receive 10.5 pence in cash and 1 contingent value right per Unbound share. The terms of the cash consideration of the offer represents a premium of approximately 162.5% to the Unbound closing share price on 27 March 2023.

The board of directors at Unbound has indicated that it would be minded to recommend accepting an offer in the event that WoolOvers Group announces a firm intention to make an offer.

Notably, if the sale goes ahead, the contingent value right would give Unbound shareholders the right to receive any net proceeds if Unbound's ongoing business interruption insurance claim relating to the COVID-19 pandemic lockdowns is successful.

WoolOvers is a knitwear and lifestyle brand that targets a similar customer demographic to Hotter - financially resilient 55+ consumers. The company operates online across the UK and internationally.

WoolOvers' financial approach comes after Unbound reported disappointing results earlier this year. The company said that trading for the year to early February saw a sales slowdown, especially in its second half.

Unbound Group saw revenue growth of 10.4% to £27.6 million in H1 after making “good strategic progress” despite "challenging market conditions". However, the company attributed a drop in H2 revenues to the impact of a summer heatwave, various industrial and postal service strikes, as well as wider economic conditions.

Last summer, Unbound revealed its plans to capitalise on its large database and deep engagement with its target market, built up via its comfort footwear brand Hotter. The plans saw the business create a platform featuring Hotter plus a curated selection of fashion and lifestyle brands.