KCP gets comfy with Dwell investment
YORKSHIRE private equity house Key Capital Partners (KCP) has made a £5m investment in furniture retailer Dwell.
The investment means that Leeds-based KCP now has a minority stake in the rapidly expanding business.
It plans to launch 33 new high street outlets over the next four years, taking its total number of UK stores to 52 by 2014.
London-based Dwell specialises in retailing furnishings that combine aspirational design with affordable pricing.
Total sales from the company¹s high street, online and catalogue channels totalled over £25m in the year to January 31, 2010.
KCP’s Andy Gregory, who led the deal, said: “The challenges facing UK retail over the last two years have been well documented, but Dwell has emerged from the turbulence in a far stronger position due to its first class management team and proven product offering.
“The business is performing strongly and we look forward to working with Aamir to expand the business significantly over the coming years, in line with its ambitions.”
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The KCP team also consisted of partner, Owen Trotter.
Mr Gregory, a former director at ISIS Equity Partners in Manchester, was taken on by KCP in April to seek out North West investments.
He has previously overseen deals involving the Manchester clothing business Americana and Crewe information storage firm Bolden James during six years at ISIS.
KCP was set up by former YFM man Peter Armitage three years ago to make investments of £1m to £10m.
Aamir Ahmad, founder and managing director of Dwell, said: “This capital injection from KCP represents the next milestone in Dwell¹s development, having strengthened the management team last year in anticipation of both this investment and our aggressive four-year growth strategy.
“KCP will prove to be a key strategic partner as we look to boost brand awareness and expand the business, beginning with five new stores in the UK in 2011.
“The timing is perfect for expansion, both in terms of the life cycle of the business and conditions in the commercial property sector, where pricing is currently extremely competitive.”
Dwell was advised on the transaction by the consumer team at Clearwater Corporate Finance, which comprised partner Marc Gillespie, director Gareth Iley, assistant director Richard Shaw, and industry adviser Jackie Naghten.
The corporate team at law firm Cobbetts, comprising partners Sean Fitzgerald and Adrian Cutler and director Victoria Zivkovic, provided legal advice to KCP.
Partner Graham Elsworth and assistant director Louise Chubb at BDO provided KCP with financial due diligence. Javelin’s COO, Richard Wolff, and director Michael Fine provided commercial due diligence, while Paul Quinn of the Quinn Partnership provided management due diligence. Insurance due diligence from Heath Lambert was provided by practice leader, Victoria Railton.
Partner Tim Hewens and solicitor Alistair Francis at Hammonds provided legal advice to Dwell, while Miriam Lampert provided employment law advice.
