Endless buys Kiddicare from Morrisons for £2m

Harriet Bailey
15 July 2014

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Private equity house Endless has invested ТЃ2m to acquire Kiddicare.com from Wm Morrison Supermarkets, which has taken a significant loss on the business.

Morrisons acquired the multichannel childrenswear business for £70m in 2011 when it only had an online presence, before expanding into 11 bricks-and-mortar stores.

The vendor is understood to have suffered a £163m write-down on its investment in the last financial year, labelling Kiddicare as a non-strategic business and putting it up for sale.

The writedown is said to be enough to cover all costs associated with its exit, including the leases to 10 stores that the grocer will retain as part of the deal.

Endless invested via its third fund, a £220m vehicle which closed above its target of £200m after three months of fundraising.

Company
Founded in 1974 and headquartered in Peterborough, Kiddicare sells nursery supplies and merchandise for children and young families both online and on the high street. It generated turnover of £80m in the year to February 2014.

People
Garry Wilson is managing partner of Endless.

Advisers
Vendor – Rothschild (Corporate finance).