Mayfair makes first exit with Fox International trade sale

The £150m valuation for the business mentioned in other press reports is broadly accurate, Unquote understands. Mayfair declined to comment on financials for the transaction when contacted by Unquote.

The deal marks the first exit since inception for Mayfair. The GP acquired a majority stake in the £50m buyout of the fishing tackle company in 2015. This was the LDC spinout's second deal, made via its maiden £400m fund. Mayfair has since then gone on to raise a second vehicle, closing earlier this year on £650m.

Fox's management team secured a stake in the 2015 deal, while leverage was provided by Investec. The lender supplied an £18m senior debt package (including working capital) to finance the deal. Next Wave, which had injected growth capital in the business in July 2014, netted a 3.1x money multiple and 150% IRR following the sale. It remained invested in the company as a minority shareholder.

Both Mayfair and Next Wave have now fully exited the business.

The vendors stated that Fox has continued to invest in western European markets since 2015, while entering into new markets in the US and especially Eastern Europe. The marketing division was also overhauled, with "significant" investment to grow the team and digital capabilities. Fox also made two acquisitions: lure brand Salmo and bait dispenser Spomb.

At the time of the 2015 deal, Fox was generating revenues of £27m with EBIT of around £4m. By 2017, this had increased to £41.6m and £5.3m respectively, according to public records. The vendors declined to disclose more recent financials.

The vendors appointed William Blair to run a limited auction process at the start of the year, Mayfair managing partner Daniel Sasaki told Unquote. With the business having met the objectives set at the time of the 2015 buyout, the shareholders felt that Fox was ready for the next stage of its development, he added.

A sale to a US trade buyer aiming to consolidate the market was a likely option from the start, Sasaki said, although the business's growth and profitability also made it attractive to financial buyers. The process ended up including a limited number of potential buyers from both pools.

Company
Founded in 1964, Fox International supplies fishing equipment for anglers. The company is based in Brentwood and sells 3,000 products in 30 countries.

People
Mayfair Equity Partners - Daniel Sasaki (managing partner).

Advisers
Vendors - William Blair (M&A); Linklaters (legal).

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• Topics
• Exits
• UK / Ireland
• Consumer
• Mayfair Equity Partners
• Trade sale
• Next Wave Ventures