Americans button up Ben Sherman

FAMED British fashion brand Ben Sherman is being taken over by the Americans in an £80m deal. The London-based group, which is providing clothing for the British Olympic team this summer, has been acquired by US clothing maker Oxford Industries.

Traditionalists need not fear for the future of the brand - its new owners said the deal will enable it expand the brand.

The deal is expected to be completed in July and will help Ben Sherman, whose shirts became a style trademark of the Mod movement of the 1960s, grows into new world markets.

Oxford‘s other activities include producing clothes under the Tommy Hilfiger and Nautica brands, which it makes under licence.

Ben Sherman has a flagship store on London's Carnaby Street and already runs other outlets overseas.

The sale was pushed forward by private equity group 3i, which invested £4m in Ben Sherman 11 years ago when it backed a management buyout.

3i also supported a second takeover by current chief executive Miles Gray in 2000. The existing management team, including Gray, will remain once the acquisition is finalised, the company said.

J Hicks Lanier, chairman and chief executive of Oxford Industries, expressed delight at the acquisition of what he described as an 'excellent brand and a well-managed company'.

'We believe there are significant opportunities for growth both overseas and here in the United States,' he added.

Ben Sherman made a £5.3m profit last year on sales of £83m. It is Britain‘s fourth-largest casual wear retailer, after Nike, Adidas and Reebok.

Shares in Oxford Industries, which are listed on the New York Stock Exchange, jumped on news of the bid. The stock rose 20% to $43.50. The deal is likely to add about $150m in annual sales next year.