Kelso Place sells Anya Hindmarch stake to Middle East investor

Carmen Reichman
06 August 2012

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A private Qatari investor group has bought a minority stake in luxury handbag company Anya Hindmarch, allowing Kelso Place Asset Management to exit the business.

The deal valued the business at £70m and consisted of a capital increase coupled with the purchase of Kelso's existing minority stake. Founder Anya Hindmarch remains the company's controlling shareholder; both her and CEO James McArthur were instrumental in selecting the new investor from a range of bidders.

Kelso secured a 4x money multiple return on its investment. The company has no debt on its books apart from a small working capital facility, the GP told unquote".

Previous investment
Kelso backed holding company ASHS in 2006, securing a 30% stake in the process. The company has since grown from 28 to 56 worldwide shops and posted a 2010 EBITDA of £1.5m on sales of £20m. Headcount increased from 60 to about 122 since 2006.

Kelso grew the business globally in terms of number of stores and franchise arrangements. The GP also brought in CEO McArthur. During Kelso's investment the company's sales and EBITDA increased by 225% and 440% respectively.

Company
Anya Hindmarch is a luxury handbag brand based in London, where it was founded in 1987. The company sells its products through its directly-operated shops and website, as well as franchise partners in Japan, USA, Hong Kong, Malaysia, Taiwan and the Middle East. It also relies on specialty retailers in global markets.

People
Anya Hindmarch CEO James McArthur is the former chief executive officer of Harrods, which was bought by Qatar Holding for £1.5bn in 2010. Investors Sion Kearsey and Sian Westerman will leave the company's board.