RJD reaps 92% IRR on Barber of Sheffield exit

Greg Gille
07 December 2018

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RJD Partners has sold its majority stake in Barber of Sheffield, a distributor of products to the tattoo, piercing, veterinary and medical markets, to a North American strategic buyer.

The identity of the purchaser remains undisclosed. RJD stated the quick exit (it bought the company two years ago) generated an IRR of 92%.

RJD acquired a majority stake in Barber of Sheffield from PHD Equity Partners and Enterprise Ventures in October 2016. The deal valuation was not disclosed at the time, though it awarded an IRR of 44.5% for PHD and Enterprise, four years after they invested a combined £2.7m in the company's management buyout.

The deal was the third investment from RJD's third buyout fund, which held its first close on £50.5m in H1 2015. Santander provided a senior debt package to support the deal.

RJD's strategy involved investment in people, technology and product development. The GP said this resulted in "strong organic sales performance", particularly in continental Europe. Barber posted revenues of £15.28m in the year ending in September 2017, with operating profit of £2.68m, against turnover of £12.84m and £1.72m in operating profit in 2016. The company also made two bolt-on acquisitions since RJD's investment: The Tattoo Shop in the UK and P'tit Rock in France.

Company
Headquartered in Barnsley and founded in 1991, Barber of Sheffield supplies equipment and consumables to the tattoo, piercing, veterinary and medical industries. Its products range from autopsy saws to surgical needles, tattoo machines and tattoo ink.

People
RJD Partners – Frank Bulman (partner).