Gresham House reaps 6.9x money on Equip exit

Ero Partsakoulaki
28 November 2022

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Growth equity investor Gresham House Ventures has sold its equity stake in outdoor apparel manufacturer Equip Outdoor Technologies, the parent company of specialist outdoor brands Rab and Lowe Alpine.

The exit provides the firm with a return of 6.9x money on its original GBP 4.45m investment, according to a press release.

The shares were purchased by the company, which was majority owned by the CEO Matt Gowar and his family both before and after Gresham House's exit, a source familiar with the situation told Unquote.

The Gresham House-advised Mobeus VCTs initially invested in Equip in 2011 to support the business' acquisition of Lowe Alpine, it said.

Unquote sister publication Mergermarket reported in November 2021 that the company had engaged KPMG to guide it in talks with investors for a potential sale.

The Mobeus VCTs' equity stake will be bought out via a refinancing, involving funding through increased credit facilities from a new bank, with HSBC UK replacing Santander, according to a press release. The Mobeus VCTs will continue to provide funding to the business via an existing loan which will remain in place, it said.

Equip increased its turnover from GBP 61m in the year to January 2021 to GBP 97m in the year to January 2022, while EBITDA grew from GBP 10m to over GBP 18m over the same period, according to the press release.

The exit builds upon a busy period for Gresham House Ventures, which has included a GBP 4.5m round of funding for eating disorder clinic Orri, a GBP 1.2m investment in plant-based ice cream business Northern Bloc, and GBP 3.5m investment in real estate software company Fu3e.

Company
Founded in 1993, Equip Outdoor Technologies is headquartered in Derbyshire, UK. Equip sells its products internationally and its portfolio includes two technical outdoor brands: Rab, which it has owned since 2003; and Lowe Alpine, which it acquired in 2011. The company is a certified Climate Neutral Company and a Fair Wear Member since 2020.

People
Gresham House Ventures − Ed Wass (portfolio partner).
Equip − Matt Gowar (CEO).

Advisers
Vendor − Peregrine Law, Ben Walmsley (legal).
Company − Gateley Legal, Mark Rutherford (legal).