Endless backs MBO at High Street TV
THE founders of High Street TV have led a secondary management buyout, backed by Endless, as they seek to maintain the retailer’s fast growth.
A group of investors linked to the former chairman of Peter Black Holdings, Gordon Black, and his family will exit the company. The terms of the deal have not been disclosed.
Andrew Malcher and Jim Coleman set up the Harrogate firm in 2008 and Endless first invested in the firm in 2012, when annual sales were approaching £15m. Revenues trebled in two years and it expects to generate EBITDA – a measurement of profitability – of £10m on sales of £70m this year.
High Street TV sells licensed and own-branded products on TV, online and via print, as well as through 35 retail groups, including Asda and John Lewis.
It currently employs 124 people and, following the deal, Endless partner Garry Wilson believes it will lead to “significantly more jobs in Harrogate supporting what is to become an international business”.
He said: “The big opportunities are international expansion, development of its own products rather than licensed products, and bolt-ons of other businesses.
“Andrew and Jim are two remarkable entrepreneurs who have built an incredible business under the tutelage of Gordon Black CBE and surrounded themselves with a great team in Harrogate.
“High Street TV is clearly the market leader in multi-channel, direct response TV and the trusted partner for businesses who want to launch innovative products into the UK and international markets.
“Since its launch in 2008 its growth in both sales and profits has been truly astounding. We are delighted to invest alongside Andrew, Jim and the wider management team as we believe that High Street TV has the potential for even greater growth in the next few years.”
Mr Malcher, co-founder and executive chairman, said: “Following our rapid growth in sales and profitability, we are extremely proud to have agreed backing to assist HSTV in maximising its potential. Endless provide us with tremendous experience and financial resource that will enable us to develop into a substantial global business. We are excited about continued Organic growth in the UK and overseas, in addition to strategic acquisitions where Endless will add further experience and opportunity.”
The Endless investment was led by Garry Wilson, James Woolley, Indra Harrison, Ed Ransome and David Isaacs. Endless was advised by Eversheds (Robin Johnson, Alasdair Outhwaite and Sophia Leavett) and the tax team at KPMG (Steve Heath, Chris Wilson and Louise Warne).
The Company was advised by Sentio (Dave Irwin and Andy Barlow) , Canaccord Genuity (Christopher Darlington and Will Bain), Walker Morris (Peter Considine and Graham McKenzie) and Squire Patton Boggs (Jonathan Jones and Louisa Bendjelloul).
