Private equity firm invests millions in outdoor clothing chain

Mountain Warehouse

The Manchester team at private equity house Inflexion has been involved in a multi-million investment in outdoor clothing firm Mountain Warehouse.

Founder Mark Neale is set to make millions from the deal which was led out of Manchester.

The 50-year-old founded the business in 1997 from a shop in Swindon. He had previously run firms which made toys and greetings cards.

Mountain Warehouse now has 220 UK stores and 80 abroad, in countries including Germany, Holland and Canada.

Under the deal, Inflexion will buy 20 per cent of Mountain Warehouse for £45million.

The deal was led by Carl Wormald out of Inflexion’s Manchester office.

EY’s Manchester office also advised on the deal. A spokesperson said: “EY’s Manchester office provided vendor due diligence led by Richard Harding, John Williams and Lisa Bardsley.”

The firm reported record sales of £225.3m in the 12 months to February and the deal values Mountain at £310m.

The business will continue to be run by Neale, who still owns a majority stake.

The entrepreneur said the investment would help the company as it pushes forwards with an expansion overseas.

He added: ‘It’s my firm belief that if you have the right products and provide great service people will keep shopping with you.

“It’s great Inflexion shares that belief and wants to help support us.”

Simon Turner, a managing partner at Inflexion, said: “Having followed the business for a decade, we understand how management envisage it growing, and look forward to assisting them.”

Addleshaw Goddard’s market leading Corporate team advised Inflexion Private Equity Partners on its investment.

The deal was led by Paul Medlicott, Lucie Alker and Josie Marsden supported by Justine Delroy, Chris Fox and Rosie Kight.

Inflexion’s investment will help the retailer to develop its digital sales channels and continue to grow its share of the £14bn European outdoor clothing and equipment market.

Paul Medlicott comments: “We are delighted to have supported Inflexion on this landmark transaction. Importantly, it also demonstrates the flexibility that private equity offers to business owners who don’t want to sell their businesses in full and either want further funding for their business and / or to de-risk in part in an environment that is seller friendly.

“The Partnership Capital model is a great example of private equity adapting and positioning itself to support business owners.”

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