Founder takes back control of online bathroom products retailer
Online Home Retail Limited, an online bathroom products retailer trading as www.plumbworld.co.uk, has completed a management buyout for an undisclosed sum.
The firm, which is based in Evesham, Worcestershire and operates a customer service centre in Colne, Lancashire, has been acquired from listed builders’ merchant Grafton Group by a management team led by an original founder of the business, James Hickman.
Online Home Retail offers quality bathroom products at affordable prices to the trade and public.
Since its founding in 1999, the business has served more than 1.5m customers, generating in excess of £26m in annual revenues, according to its latest published financial statements.
Jeremy Cole and David Middleton, of Manchester-based Cole Associates Corporate Finance, acted as lead advisers to the MBO team on the acquisition and finance-raising.
The MBO was backed by private equity from Panoramic Growth Equity and debt facilities from Arbuthnot Latham Commercial Finance.
Online Home Retail managing director James Hickman feels this is the right time for the MBO and being independent will allow the business to take advantage of new opportunities in the online bathroom marketplace.
“The E-commerce consumer market is very fast moving and intensely competitive. It requires quick decision making, calculated risk-taking and a ruthless focus on eliminating avoidable costs.
“We believe being independent will offer us greater agility and enable us to focus 100% of our efforts on delivering growth and improving profitability.”
David Wilson, partner at Panoramic Growth Equity, added: “We’re delighted to support James and his colleagues in the acquisition of Plumbworld.
“We were excited by the prospect of backing a well-established e-commerce business which provides great customer service by developing and applying the very latest digital technology.
“The MBO team have all the skills and experience to take the business forward in leaps and bounds. Retailing is clearly increasingly moving online and Plumbworld are at the forefront of that progress.”
Panoramic’s investment was led by partner David Wilson, supported by investment director David Atkinson. Panoramic received legal advice from Keith Dinsmore and his team at lawyers Vialex in Glasgow.
Newbury-based James Cowper Chartered Accountants provided financial due diligence.
The management team received legal advice from Richard Norton of Charles Russell Speechlys (Cheltenham office).
The Arbuthnot Latham team, led by Andrew Rutherford (London office), received legal advice from Jon Bew at Irwin Mitchell (Birmingham office).
Grafton Group were advised by Squire Patton Boggs (Birmingham office).
