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3i-backed GartenHaus acquires Outdoor Toys in the UK

3i Group- backed (3i) A-Z Gartenhaus (GartenHaus), an online specialist in garden homes, sheds, saunas and related products in Northern Europe, has acquired Outdoor Toys, an online D2C retailer of outdoor garden toys in the UK. 

As part of the transaction, 3i will invest cEUR56 million of additional capital.
 
Founded in 2006 by James Owen and based in Mid Wales, Outdoor Toys is among the largest outdoor garden toys specialists in the UK. The company offers over 1,000 products and specialises in Modular Toys, including swing sets, slides and climbing frames, as well as ride-on toys, trampolines, sandpits and accessories. The company operates a vertically integrated value chain with its own product design, UK manufacturing, customer service, dedicated logistics fleet and direct online sales to customers through its own website as well as online marketplaces.
 
Outdoor Toys is known for its comprehensive customer service and strong customer satisfaction, with a reputation for quality. The company has delivered sales growth of 70 per cent per annum since 2019 and shipped over 1 million items in the last twelve months.
 
This acquisition expands GartenHaus’s product portfolio and geographic reach whilst also enabling Outdoor Toys to increase its international reach. The combined business will be able to cross sell its products to customers as well as benefit from online marketing, customer service and supply chain synergies. The acquisition also supports GartenHaus’s ambition of building the leading European platform for home and garden projects.
 
Today’s acquisition is the second for GartenHaus since 3i’s investment in September 2020 and follows the addition of Polhus, a leading online retailer of garden houses and related products based in Scandinavia, in late 2020. Based on the strong organic performance of GartenHaus as well as the two strategic acquisitions, total EBITDA of the group has tripled since 3i´s original investment.
 
James Owen, founder and CEO of Outdoor Toys, says: “We are delighted to be joining forces with GartenHaus to bring our award winning products to even more customers across Europe. We are excited for the future and look forward to continuing to grow Outdoor Toys whilst benefitting from the know-how of GartenHaus and its strong platform.”
 
Sebastian Arendt, CEO of GartenHaus, says: “I would like to welcome James and the Outdoor Toys team to GartenHaus. There is a strong fit between our businesses and we look forward to working together as we continue our growth. 3i’s backing and international network have been instrumental in our achievements to date and we are excited to look ahead at further international expansion.”
 
Peter Wirtz, Partner 3i, adds: “GartenHaus and Outdoor Toys are a great combination and we are very happy to sign our second acquisition only a year after investing in GartenHaus. This transaction fits with our strategy of building GartenHaus into the leading European platform for home and garden projects.”

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