Phoenix sells Musto to OTPP's Helly Hansen

It is understood the deal values the business in the region of £50m.

The bolt-on is expected to expand Helly Hansen's range of products and boost its presence in the UK market. The trade buyer will also invest in Musto's international growth strategy and the development of its technology infrastructure and sourcing activities.

According to publicly available documents, Musto is targeting increased international expansion in order to mitigate trading risks associated with the Brexit vote. The documents also reveal the company has sought to increase its focus on the premium market and has introduced accessories and lifestyle products to its range.

Following the transaction, Musto CEO Peter Smith will continue in his role, while Helly Hansen CEO will take on the role of executive chairperson at Musto.

A spokesperson for Phoenix declined to comment on the deal valuation or the returns generated from the sale.

Previous funding
Phoenix acquired Musto in August 2007 in a deal valuing the business at £40m, according to unquote" data. The original deal consisted of £23m in equity and £17m in debt.

OTPP acquired a 75% stake in Helly Hansen from Altor Equity Partners in July 2012.

Company
Founded in 1964 and headquartered in London, Musto is a retailer of sailing clothing and outdoor leisurewear. It generated £28.6m in revenues in 2016, according to publicly available documents, with an operating profit of £929,000.

People
Phoenix Equity Partners – Hugh Lennon (chairperson).
Musto – Peter Smith (CEO).
Helly Hansen – Paul Stoneham (CEO).

Advisers
Acquirer – Ondra Partners (corporate finance); DLA Piper (legal).
Company – Financo (corporate finance); Travers Smith (legal).

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