Yorkshire bathroom retailer secures major investment from US private equity giant
VICTORIA Plumb, one of the region’s fastest growing retailers, has secured “significant” investment from global private equity firm TPG.
The deal is understood to be worth around £200m, and US-based TPG has acquired a majority stake in the East Yorkshire-based online retailer, which is one of the UK’s best-known domestic bathroom brands and owned by Hull firm the Walker Group. It has been established since 1999.
TPG Capital will partner with the Walker family to back Victoria Plumb’s chief executive Jason Walker. The investment is set to help the company accelerate its growth and set the benchmark for the UK bathroom retailing industry.
Jason Walker, who launched Victoria Plumb with his brother Sean, said: “For 15 years we have been committed to delivering quality products to our customers and making a real mark on the UK bathroom retail sector. With TPG we have found a highly experienced, long-term partner with the right digital DNA to help us achieve our maximum potential.”
Malte Janzarik, principal at TPG Capital, said: “We have been looking for high growth companies that fit into our investment theme of digital disruption. Victoria Plumb represents an exciting opportunity to build one of the leading e-commerce companies in the UK. We are excited to back Jason as CEO and to partner with the Walker family to take the business to the next level.”
Victoria Plumb’s latest results show that sales climbed by 37.9% to £26.2m for the year ending February 2013 and pre-tax profits increased 25% to £6m.
DLA Piper corporate partner, Wendy Harrison, acted on behalf of the vendors of Victoria Plumb on the disposal.
Christian Mayo, corporate finance partner at KPMG in Leeds, advised the Walker family on the deal, with Giles Taylor and Neil McManus. Tax partner Dermot Callinan, who is also based in KPMG’s Leeds office, provided tax advice to the shareholders.
Mayo said: “Victoria Plumb attracted significant interest during the marketing process from parties hungry to back strong, consumer-facing brands with established online presence. It is now the right time for the management team to have secured external investment, which will catalyse the business’ expansion.”
The Walker family is best known for buying the MFI brand out of administration in 2010.
