Wragge & Co has advised the founder of Mountain Warehouse on the £85 million acquisition of the outdoor clothing and equipment retail business.
The buyout of minority shareholder LDC means the management team, led by founder and CEO Mark Neale, takes full ownership of the 169-strong retail chain. It follows the decision by LDC to sell its shareholding in the business which it acquired in 2010.
In a timeframe of just over three weeks, Corporate partner Ian Piggin and associate Nick Crabtree, Banking partner Kirsty Barnes and director Jonathan Segal advised Mark Neale and his team on the refinancing provided by RBS and asset management group Alcentra. Advisers from Wragge & Co's Corporate, Banking, Real Estate and Transaction Services teams were involved in the deal.
Ian Piggin said: "This deal highlights the importance strong management teams play in engineering growth plans. Businesses have faced challenging economic conditions in recent years and with cost pressures, weak demand and the erosion of margins, expansion has not been on many boardroom agendas.
"But, Mountain Warehouse is one of the UK's retail successes with its sights firmly set on future growth in areas such as online and new markets in Europe. Its focus and the business acumen of its management team will place it in a strong position to achieve this."
Mark Neale, CEO of Mountain Warehouse, said: "This is an example of excellent deal execution in a very short deal timetable. The Wragge & Co team delivered the entire transaction within deadline and, thanks to their commercial approach, crucially delivered with the minimum of disruption to our business. They understood our business; they understood our objectives and delivered a single solution to ensure this deal was a success."
Established in 1997, Mountain Warehouse has seen its turnover increase from £47.5 million to £75.6 million in the year ending February 2013. During this time is has opened 60 stores and created over 500 jobs. The retailer, which continues to open new shops across the UK, has plans to break through the 300 store barrier across Europe and boost its online proposition which now ships orders to more than 100 countries.
The business has enjoyed an increase of like for like sales of around 10% during the current financial year and seen online sales more than double in the year to date.
Wragge & Co's 15-partner Corporate, Banking and Financing practice delivers expert legal advice and commercial solutions on all corporate, private equity and leveraged transactions.
The Private Equity team advises on a broad range of acquisitions, investments, disposals and buy-outs for leading players in the mid-market. Deal highlights this year include advising CBPE Capital LLP on the £183 million sale of Rosemont Pharmaceuticals, and the recent management buy-out of Equiom.
Wragge & Co advised LDC in 2010 on the acquisition of its stake in Mountain Warehouse.
