Exponent offloads Radley

Alice Murray
06 June 2016

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Exponent Private Equity has sold British handbag retailer Radley to fellow GP Bregal Freshstream.

The deal marks Bregal Freshstream's third since launching its €600m fund in September last year.

Following the transaction, Don McCarthy will join the business as chair. McCarthy was previously executive chair of House of Fraser and chair of Aurum Holdings, which includes Watches of Switzerland, Mappin & Webb and Goldsmiths. He was also CEO and chair of Rubicon Retail, which he sold in 2006.

Previous funding
Radley has a long private equity history, having first been acquired by Phoenix Equity Partners in March 2006 in a deal worth £45m. The deal saw Phoenix investing £18m for more than 50% of the company, according to unquote" data.

Exponent then purchased the company in December 2007 in a £130m secondary buyout. The deal awarded Phoenix a 3.8x return and an IRR of 120%, according to unquote" data.

Company
Established in 1998, Radley is a handbag and accessories brand, operating in the affordable luxury retail market. It has a multi-channel offering and is active in the UK, Europe and Asia. In the UK, Radley has 33 stores and eight concessions, as well as a presence in 33 John Lewis stores, 58 branches of House of Fraser and 200 other department stores.

The business generates 10% of its total sales outside the UK, mainly through distributors in Germany and Japan.

People
Bregal Freshstream – Patrick Smulders (managing partner).
Radley – Justin Stead (CEO); Don McCarthy (chair).

Advisers
Company – Cavendish Corporate Finance (corporate finance).