PE-backed MBO for luggage brand with roots in Manchester
Luggage business Antler has completed a management buyout, marking a substantial exit for private equity house LDC after it bought the historic brand out of administration seven years ago.
The Manchester office of mid-market private equity investor Endless has backed the deal, led by partner Tom Jack and investment director Richard Harrison, both of whom will join the Antler board.
David Sharman, chief executive officer, will continue to lead the company after the Endless buyout.
Antler has a turnover of £35m, with 280 employees based in London and across 32 retail locations throughout the UK.
The luggage brand was acquired by LDC in a £15m pre-pack administration deal in 2010.
In 2013 it closed and sold its head office in Bury, Greater Manchester and relocated to London. Antler, which is over 100-years-old, had been at its headquarters at Alfred Street since 1962. Despite manufacturing moving overseas, around 140 people worked at the site in finance, warehousing, marketing, administration and customer service.
Latest accounts at Companies House are for the year to the end of December 2015 – when the company was entering the second year of a three-year turnaround plan. They show the company made a pre-tax loss of £4m (£2014: £5.6m loss) on a turnover of around £30m.
With operations in the UK, China and the US, the company designs and supplies a range of luggage across two brands, Antler and Revelation.
Amongst new lines launched recently is Atom, the award-winning, super-strong and lightweight product made from Armordon, a pioneering material developed and manufactured in the UK.
North West locations include stores at Cheshire Oaks, The Lowry Outlet Mall, and Pilot Mill, Bury.
Simon Adcock, senior portfolio director at LDC said: “LDC has successfully divested its majority shareholding in Antler to Endless but will retain a small minority stake, continuing our support for the business.
“This is a good outcome for all parties. Bringing an external investor on board provides management with an opportunity to deliver their ambitious growth plan and to further invest in the Antler and Revelation brands both in the UK and overseas in what remains a growing market.
“With its reputation for quality and innovation, and unique British heritage, Antler has the potential to further expand. We wish the business and management team every success under the future ownership of Endless.”
Endless partner Tom Jack said: “We are delighted to have invested in this iconic British brand. With fresh investment and hands-on support from Endless, we believe Antler is capable of delivering strong sales and profit growth in the future and we’re excited about the opportunities ahead.
“This is the third deal for our Manchester team in only 10 days, reflecting the strength in depth Endless has as it continues to invest in the North West deals market.”
The deal is the latest from Endless’ £525m Fund IV and marks Endless’ third investment in only 10 days and follows the acquisition last week of Go Plant, which was also led by Jack, and the acquisition of CTI led by partner Mathew Deering.
Endless was advised by law firm Addleshaw Goddard, led by corporate partner Duncan Wilson together with Katie Parker, Ben Edwards and Elizabeth Wareing. Tax advice was provided by Tim West, Fay Parfitt, Emma Harris and Becky Cotton at EY. LDC was advised by Anup Shah of IJK Partners and by James Kerrigan, Chris Wilson and Rob Sissons at DLA Piper.
