£50m MBO for clothing group
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A corporate clothing business has put on its Sunday best after undergoing a £50m management buyout from its American parent.
The predominantly-UK business has been separated from Tailored Brands, which is listed on the New York Stock Exchange.
The spun-out business is the UK’s largest supplier of corporate clothing uniforms and trades internationally through its four brands – Dimensions, Alexandra, Yaffy and Twin Hill.
It employs more than 800 people across its offices in Castle Donington, Thornbury, Glasgow and Houston, and is on target to achieve annual sales of £150m this year. Its Dimensions brand, which is based in the East Midlands, supplies corporate clothing to millions of people in the UK and internationally through multi-year managed service contracts.
The management buy-out team was led by executive chairman Stuart Graham, group chief financial officer Morgan Atherton, Dimensions’ managing director Hayley Brooks, and Alexandra managing director Martin Lyne.
Graham said: “We have been part of Tailored Brands for almost a decade and during that time we have built our business into a truly global player.
“We are focused on investing in our proposition, taking our market-leading products and services to more customers at home and overseas, and ensuring our business has solid foundations for future growth.”
The deal was funded by LDC and PNC Business Credit, while Clearwater International provided corporate finance support and led negotiations with the vendors.
John Green, investment director at LDC in Nottingham, said: “Together they have built a business that is rooted in quality and a commitment to client service, and given the group’s scale and geographic footprint there is a huge opportunity to take the group to the next level.
“Our investment and support will now enable the team to inject capital into key growth areas and drive further expansion.”
Rob Burden, partner at Clearwater International, added: “It is a well-established high quality group with exciting prospects and we know the team, with the support of LDC and PNC, are ready to take full advantage of this opportunity.”
Browne Jacobson provided legal advice to the management team.