Investment company Boundary Capital today announced that Brunner Limited, a vehicle in which Boundary is the majority shareholder, has agreed to buy 45 per cent of Art Holdings Limited for €65 million.
Art Holdings, a new holding company, has agreed to acquire 100 per cent of the activities of the department store Arnotts.
The subscription is expected to take six weeks after which Boundary, which is led by financier Neil McFadden, will invest €40 million for an indirect stake of 28 per cent in Arnotts.
Anglo-Irish Private Bank will co-invest €25 million with Boundary, the company said today in a statement to the Stock Exchange.
Last month a row between the families that owned Arnotts ended in a €40 million buy-out deal.
Members of the O'Connor family, who owned 24.57 per cent of the company, agreed to sell the stake to chairman and majority shareholder Richard Nesbitt for more than €40 million.
The sale ended the O'Connor family's 70-year involvement with Arnotts.
Mr McFadden is a director of Arnotts and the beneficial holder of shares in a joint venture property undertaking, 50.1 per cent owned by Arnotts.
Boundary said it will fund its portion of the subscription from its own resources using €11 million cash and the balance €29 million from a loan facility.
In June, Boundary floated on the Alternative Investment Market in London and the IEX in Dublin. It has a market capitalisation of €40 million.