3i invests in retailer Go Outdoors

RETAILER Go Outdoors has secured a £28m cash injection from private equity house 3i as it accelerates its growth plans to open 40 new shops over the next four years.

3i has taken a minority stake in the Sheffield-based outdoor clothing and equipment retailer, which has capitalised on the growing popularity of UK holidays as consumers shun foreign travel.

Go Outdoors saw turnover increase by 57% last year to £114.9m.

Under the deal, the company’s founders and management team have retained a stake in the business. Joining the team as chairman is former Tesco executive Colin Holmes.

Paul Caplan, president, and John Graham, chief executive, of Go Outdoors, said in a joint statement today: “We are very excited by the capital injection and the partnership with 3i. Go Outdoors is a fast growing company with ambitious plans for the future.

“Through our unique business model, we can now extend our presence in the UK market through new store openings and further growth within our existing stores.

“We know that 3i is an experienced and capable partner who will make a significant contribution towards us in achieving our goals for the business.”

Go Outdoors, which has 30 stores and opened its first outlet in Manchester last week, was founded as the Camping & Caravanning Centre (CCC) more than 40 years ago.

CCC was the subject of a buy-in management buyout led by Mr Caplan and Mr Graham and backed by Yorkshire Fund Managers Equity Partners in 1998.

YFM subsequently invested in the business twice more and the company was rebranded as Go Outdoors in 2004.

Following the 3i investment YFM has sold a part of its stake in Go Outdoors.

Mr Graham added: “Without the active involvement and strategic advice from the people from YFM Equity Partners, Go Outdoors wouldn’t be the business it is today.

“We have grown from one store in 1998 with sales of £2.2m to 30 stores with sales of £115m. The additional investment from 3i Group plc will help us accelerate our growth plans.”

Paul Cannings, director at YFM Equity Partners, said: “YFM Equity Partners specialise in supporting transformational growth. For 13 years we have worked in close partnership with the founders of the business helping them transform it into the number one fascia in the market.

“It was the first outdoor company to offer everything under one roof and has continued to expand despite the recession. We look forward to continuing to work with the management team and 3i as the business grows further.”

Advisers on the deal included law firms Addleshaw Goddard, Osborne Clarke and Pannone, Drivers Jonas Deloitte, Aon, PwC Corporate Finance and BHP Corporate Finance.

Addleshaw Goddard corporate finance partner Yunus Seedat led the transaction, with managing associate Dahren Naidoo.

Mr Seedat said: “We have an excellent, longstanding relationship with 3i, and this acquisition of a minority stake in Go Outdoors represents a great opportunity for them to help an exciting, market leading business grow and develop.”

Philip Treanor, head of corporate finance at Manchester-based Pannone, said: “We are delighted to support the dynamic and entrepreneurial team at Go Outdoors. The cash injection from 3i gives them an ideal platform to increase market share through the roll-out of new stores and the enhancement of existing outlets.”

Director Justin Maltz led the team at 3i.

Go Outdoors will continue to be supported by its long term banking partner Lloyds Banking Group.