Moss Bros is set for a return to private ownership after agreeing terms on a cash bid from the owners of Crew Clothing.

The board of the formal menswear business has accepted an offer of 22p per share – a 60% premium on yesterday’s closing price – from Brigadier Acquisition Company Limited.

The offer values Moss Bros at £22.6m.

Brigadier is owned by Regiment Acquisition Company, which is in turn majority owned and controlled by Crew Clothing owner Michael Shina.

Moss Bros said the acquisition, which is now subject to a shareholder vote, is expected to be completed during the second quarter of 2020.

Shina said: “We are delighted that the directors are recommending our offer to acquire the business, as we greatly admire the heritage and 169-year history of Moss Bros, and the quality and determination of its existing management team.

“We believe that Moss Bros can have a bright future in the private arena and are excited to contribute our expertise and assist in delivering the current strategy.

“We see the acquisition as an opportunity to partner with an excellent management team to improve Moss Bros’ financial performance and protect its heritage, brand and presence on the UK high street.”

Moss Bros chair Colin Porter added: “In September, the board of Moss Bros set out its strategy to drive Moss Bros’ long-term performance and we have seen some early positive results which support the board’s confidence in Moss Bros as a standalone entity.

“However, the board is also aware of the risks attached to executing this strategy in the current retail operating environment and as a publicly listed company.

“Having considered a range of strategic options, the board believes that the terms of the acquisition, which offers a premium cash exit to Moss Bros’ shareholders, fairly reflect the value of Moss Bros and its prospects, taking account of these risks.”