IW Capital has successfully facilitated a GBP626,000 loan to Discovery Yachts to support the company’s acquisition of Southerly Yachts – a manufacturer of cruising yachts based in the UK.
Discovery Yachts was founded in 1998 in a bid to create a superior cruising yacht that boast luxurious high-end furnishings. Nearly 20 years later, Discovery Yachts is a thriving business that has sustained an impressive rate of annual growth – the company currently has over 70 employees ranging from designers to expert craftsmen.
The acquisition of Southerly Yachts is an important milestone for the company, cementing its position as one of the UK’s leading manufacturers and designers of luxury cruise yachts. As a result of the acquisition, the company will expand its product line to 11 models ranging from 32 – 67 feet in length, comprising of both single and dual hull vessels.
While no new Southerly yachts have been built since 2014, the brand is still widely recognised in the market, and the Discovery Yachts management team believe the market is primed for the return of Southerly Yachts. This is reflected in the number of orders that have already been secured by Discovery for a new model.
In addition to the loan facilitated by IW Capital to support the acquisition, the company intends to raise further equity funding over the next 12 to 18 months to support additional growth and development of new models.
Luke Davis, CEO of IW Capital, says: “For me, Discovery Yachts epitomises the new generation of UK scale-ups that are cementing Britain’s reputation as a leading global innovation hub. By combining expert craftsmanship with superior sailing technology, the company has successfully developed a product that caters to the demands of an expanding market. IW Capital is proud to be supporting Discovery Yachts at this pivotal moment of expansion, and I look forward to seeing what the future will bring for this rising UK business.”
Managing Director of Discovery Yachts, Sean Langdon, says: “The loan provided by IW Capital comes at an important time for the company as we cement our position as one of the UK’s leading manufacturers and designers of sailing yachts. Looking to the future, Discovery Yachts will also be seeking to raise additional equity to support our future expansion over the next 12 to 18 months.”
