Merino picks up Tobar from Primary Capital

Alice Murray
12 January 2016

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Merino Private Equity has acquired Tobar Group, the parent of toy and gift retailer Hawkinтs Bazaar, from previous backers Primary Capital.

Merino invested from its debut fund, which closed on £10m in early 2015. The size of the deal was not disclosed; however, Merino usually invests no more than £5m in companies valued up to £20m.

Debt for the deal was provided by RBS.

Previous investment
Primary Capital backed the £42m management buyout of Tobar in September 2006, in a deal that saw the GP take a 50% stake in the company.

In December 2011, Tobar fell into administration in a process overseen by Zolfo Cooper, which saw the closure of 57 stores and the loss of 300 staff. In January 2012, the business was reacquired by Primary Capital, which brought in a new management team to reshape the business.

Company
Tobar was founded in 1973 and is headquartered in Norfolk. The company operates toy and gift retailer Hawkin's Bazaar as well as seasonal online retailer Stocking Fillers. Hawkin's Bazaar currently operates 30 stores throughout the UK.

Tobar also operates a wholesale division, which supplies toys and gifts to retailers, supermarkets and museums.

People
Merino Private Equity – Mark Colley (managing director).
Primary Capital – Graham Heddle (partner).
Tobar Group – David Mordecai (CEO); Glyn Loveday (financial director).

Advisers
Equity – Clearwater International, Gareth Iley, Alper Dervish, James Clifford (Corporate finance); Stevens & Bolton (Legal); Ensors (Financial due diligence).
Comapny - Birketts (Legal).