Private Equity Partners (Inflexion) has completed a minority investment in Mountain Warehouse, a UK-based outdoor clothing and equipment retailer. The investment is being made from Inflexion’s specialist minority fund, Partnership Capital.
The deal sees Inflexion invest approximately GBP45 million for a near 20 per cent stake, attributing Mountain Warehouse an enterprise value of GBP310 million.
Mountain Warehouse will continue to be run by founder and CEO Mark Neale and his team.
Neale started the business with a single store in 1997. Today, it is a multi-channel business employing more than 3,000 people in nine countries. The group has over 220 UK stores with a further 80 in the international markets of Poland, Canada, Holland, Germany, Ireland, Austria, New Zealand and the US. Mountain Warehouse sales climbed 22 per cent to a record GBP225.3 million in the 12 months to February 25, 2018, marking 21 years of unbroken revenue growth.
Inflexion’s investment will help the company grow its share of the GBP14 billion European market for outdoor clothing and equipment and develop its digital sales channels.
Neale says: “I am delighted to be teaming up with Inflexion. They truly understand our business and their investment will help turbo-charge our expansion plans, particularly overseas and online.”
“It’s my firm belief that if you have the right products at the right price, in the right locations and provide great service people will keep shopping with you. It’s great that Inflexion share that belief and wants to help support the next phase of our growth.”
Simon Turner, Managing Partner at Inflexion, says: “We have known the management team for many years, having identified the business as one with an unrivalled brand in the outdoor market. Having followed the business for a decade, we understand how management envisage it growing, and look forward to assisting them with their growth in the UK and international markets, as well as with their digital offering.”
The Inflexion deal team comprised Carl Wormald, Edward Lynch and Nick Rosenberg. This deal was made by affiliated funds advised by Inflexion Private Equity Partners LLP.
