TA's M and M Direct to join IPO rush

Alice Murray
04 June 2014

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Discount online apparel retailer M and M Direct, backed by TA Associates, is joining the long list of sponsor-backed assets to float.

According to reports, the company is expected to achieve a market cap of £140-170m.

Cannacord and Investec are advising on the float. The company is planning to list on the junior AIM market of the London Stock Exchange.

Previous investment
TA acquired M and M in November 2007 from previous backers ECI Partners in a deal valued in the region of £90m. The transaction was supported by a £30m debt package provided by Barclays, as well as £10m of mezzanine funding from TA's mezzanine fund, according to unquote" data.

ECI acquired the company in 2004, backing its management buyout. Its sale to TA awarded ECI with 4.4x return and an IRR of 59%, according to unquote" data.

Under TA's stewardship, M and M has expanded into Europe, launching German, French, Danish, Polish and Austrian local sites.

Company
Established in 1987 originally as an end-of-line sports products clearance retailer, M and M is today a pan-European online discount apparel outlet. It is present in more than 20 countries including the UK, Germany, France, Austria, the Netherlands and Poland. M and M specialises in selling discounted fashion and sports brands including Adidas, Fred Perry, Ted Baker and Timberland.

The company generates revenue of £120m with EBITDA of £10.5m. M and M was originally located in Stourbridge but relocated to Herefordshire in 1994.

People
Former John Lewis online boss Jonathon Brown is CEO of M and M, while Alan White, former CEO of N Brown, is chairman.