Electra buys Hotter Shoes from Gresham

The deal value is believed to sit in the region of £200m, with Electra supplying £85m in equity. Hotter's founder, Stewart Houlgrave, has retained a stake in the business following Electra's acquisition.

Hotter hired Rothschild in March last year as it began mulling a £150m sale, according to reports at the time.

Gresham acquired Hotter in December 2007, taking a 44% stake in exchange for £21m in equity, according to unquote" data. Debt facilities were provided by HSBC.

Under Gresham's ownership, Hotter experienced strong growth by entering the US market. The company has also expanded into the Middle East, Russia and Germany.

According to Gresham, Hotter's sales have doubled in the last four years and the number of stores has increased from five to 56, which created 500 jobs in the process.

Debt
A debt package was provided for the secondary buyout by Lloyds Banking Group and HSBC.

Company
Founded in 1959 and headquartered in Skelmersdale, Lancashire, Hotter Shoes manufactures and retails shoes that are designed predominantly for comfort. The company uses its Comfort Concept product to create shoes that are cushioned and flexible.

Hotters employs around 1,000 staff and sells more than 2 million shoes per year. The company is believed to have generated revenues of £74.9m in 2012. At the time of Gresham's acquisition, Hotter reported turnover of £38m and employed 300 staff.

People
Peter Taylor is the CEO of Hotter. Electra chief investment partner Alex Fortescue worked on the deal alongside investment director Sarah Williams and investment associates Shakira Adigun-Boaye and Tom Stenhouse. Andy Marsh and Iain Wolstenholme, both partners at Gresham, managed the firm's investment in Hotter.

Advisers
Company – Rothschild (Corporate finance).

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• Topics
• UK / Ireland
• Buyouts
• Consumer
• Exits
• United Kingdom
• Gresham Private Equity
• Electra Partners LLP
• Secondary buyout