LDC invests £22m in Joules

Ellie Pullen
04 November 2013

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LDC has backed UK-based fashion and homeware retailer Joules with a ТЃ22m investment in exchange for a minority stake.

The funding provided by LDC will be used by Joules to expand and strengthen its position in key international markets, such as Germany, Asia and the US. The company will also continue to develop its offerings in the UK market.

Joules has experienced growth in recent years through its improved e-commerce platform, growth of its wholesale presence and the internationalisation of the company.

Joules founder and CEO Tom Joule, the company's largest shareholder, is believed to have held a 60% stake in the business prior to the investment by LDC. Joule, as well as managing director Colin Porter and the existing senior management team, will continue to lead the business.

unquote" reported in May that LDC was believed to be among a number of private equity firms showing interest in the business. Graphite Capital was also reported as circling the business in April this year, but apparently dropped out of the running the following month.

Company
Founded in 1980, Joules is headquartered in Market Harborough, Leicestershire. The company currently operates 60 retail stores and is stocked by several wholesalers, including John Lewis, Harrods and Selfridges.

Joules was initially established as a fashion retailer focused on a British country heritage style. The company recently expanded its product base to offer homeware such as bedding, crockery and cushions.

The business employs around 880 staff and recorded turnover of £79.4m in the year ending May 2013, as well as a reported EBITDA of £7.4m. According to LDC, Joules' current annual turnover is approaching £90m.

People
Tom Joule is the founder and CEO of Joules. LDC investment director Andy Grove and investment manager James Robinson led the deal for the firm's Nottingham team, with support from investment director Richard Whitwell and director John Garner. Grove and Garner have joined the board of directors at Joules following the transaction.

Advisers
Equity – Clearwater Corporate Finance (Corporate finance); Eversheds (Legal); Deloitte (Tax).
Company – Rothschild (Corporate finance); Browne Jacobson (Legal); PwC (Commerical due diligence).