The end of 2012 saw a flurry of M&A activity with private equity firms snapping up successful online and multichannel retail businesses.
In December, Palamon Capital Partners, alongside Sirius Equity, confirmed the purchase of the majority stake in beauty products
etailer Feelunique for £26 million. Following the investment, Sirius cofounder and LK Bennett chairman Robert Bensoussan joins Feelunique’s board as chairman. Chief executive Aaron Chatterley, who remains in the role, says the first priority for Feelunique is to strengthen its position in the UK and build brand awareness.
Feelunique launched in 2005 and employs more than 125 staff at its headquarters in the Channel Islands. It’s growing at a rate of 40 per cent per year, delivering revenues of £30 million. Chatterley believes the business can reach £100 million within three years.
Also in December, the Carlyle Group added to its health-food portfolio with an investment in Nature Delivered, the parent company of snacks-by-post business Graze.com, for an undisclosed sum. It follows its 2010 acquisition of NBTY, which operates Holland & Barrett in the UK. The deal sees Carlyle and DFJ Esprit join Octopus and Graze’s founders as investors. It also signals that Graze is planning to take its model overseas, with a holding page on Graze.com announcing the brand’s imminent arrival in the US.
In 2012, furniture retailer Dwell saw existing investor Key Capital Partners up its interest in the business, taking the majority stake. Aamir Ahmad, who founded the business in 2003, steps down from the day-to-day running of the business but retains a financial interest.
Other notable deals
Sir Philip Green sold a 25 per cent chunk of his Arcadia retail empire, which includes Topman and Topshop, to US private equity firm Leonard Green & Partners, valuing the business at £2 billion.
Online apparel retailer Asos took a minority in Covetique, a preowned designer-fashion boutique.
Pet supplies retailer Pets at Home bought equestrian specialist Ride-Away from its founder directors for an undisclosed sum.
Prescription Eyewear, the parent company of GlassesDirect, strengthened its foothold in Europe with the acquisition of Nordic contact lens etailer Lens On.
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