Better Bathrooms seals £10m BGF investment
BETTER Bathrooms, the Leigh-based company founded by National Business Awards entrepreneur of the year Colin Stevens, has sealed a £10m investment deal from the Business Growth Fund.
The company, which has a substantial online presence and showrooms in Wigan, Warrington and Manchester, plans to create 500 jobs over the next five years, following the investment.
BGF has taken a minority stake in the Better Bathrooms and has brought experienced retailer Paul Gilbert, a former finance director of Matalan and current chairman of The Gym Group, as non-executive chairman.
The investment will boost growth by allowing the company to explore alternative source supplies, expand into adjacent markets and potentially into new global geographies.
Colin Stevens said: “I’m thrilled to have BGF come on board with Better Bathrooms. For me, BGF were the ideal partner as we share the same values, with company growth and the creation of jobs being of paramount importance.
“I believe that with BGF’s investment and expertise, we will be able to take the company to the next level, expanding our factories and product lines, and ultimately hit our future growth target of £200m.
“Of course for our customers this will allow Better Bathrooms to continue with their motto of better prices, better service, better bathrooms.”
In 2007 Better Bathrooms’ turnover was just over £1m and in the last financial year the turnover was £32m, with a target of reaching £40m within the next 12 months.
David Colclough, an investment director at BGF’s Manchester team, added: “Better Bathrooms was the first UK business to carve out a position as a true multi-channel retailer of bathroom products. A leader in its space, it offers one of the largest and best value ranges in the UK.
“The growth that this company has demonstrated over the last 12 years has been outstanding. But Colin, who is an extremely passionate and driven entrepreneur, is keen to do it on a much bigger scale.
“This is where BGF comes in and it is a great example of how growth capital can really help a business with ambitions to expand. This investment also shows how we can flexibly structure the financial arrangements such that we best meet the needs of the shareholders.”
This is the sixth business in the North to be backed by BGF to date and the largest single investment. It brings the total invested in the region to almost £30m.
Corporate partner John Boydell from North West law firm Brabners advised Better Bathrooms on the investment.
