NorthEdge invests in Lights4fun

Katharine Hidalgo
19 November 2020

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NorthEdge has invested in the management buyout of Lights4fun, an online retailer of decorative lighting.

The investment was funded from GP's £315m NorthEdge Capital Fund II, which closed in March 2016. It was 75% deployed as of September 2020. The firm has taken a majority stake in this company.

In a competitive process run by Sentio, NorthEdge was chosen as the preferred partner due to their cultural fit with the management team, a source close to the situation told Unquote.

NorthEdge investment director James Marshall and Andy Ball will join the board.

The funding will go towards expanding the company's market presence internationally. It currently sells its products in the UK, France, Spain, Italy, Germany and the US. The company will also invest in its market and data analytics capabilities, as well as expand its product range.

The management team has reinvested in the company and will be led by managing director Kieran Eblett, who joined the business in 2018.

Clydesdale Yorkshire Bank provided debt facilities to support the deal.

Company
The Harrogate-headquartered direct-to-consumer business has been operating since 2003 and sells more than 700 decorative lighting products online, according to a statement. Its range includes indoor and outdoor fairy lights, festoon lights, and seasonal lighting. The business now employs 40 people and generates revenues of £20m.

People
NorthEdge – James Marshall (investment director).

Advisers
Equity – EY, Mark Clephan (corporate finance); Addleshaw Goddard, Rich Hunt, Carly Gulliver, Ben Collins, Caera Loughran, Shannon Hardcastle, Andy Fordham, Jen Hanson (legal); Dow Schofield Watts Transaction Services, Jonathan Steed (financial due diligence).
Vendor – Sentio Partners (corporate finance); Wilkin Chapman (legal); Mazars (tax).
Debt – Squire Patton Boggs (legal).