Isis makes 15x money on Wiggle sale to Bridgepoint

Amy King
08 December 2011

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Bridgepoint has backed the ТЃ180m SBO of UK-based online retailer Wiggle in a deal which saw the vendor achieve a 69% IRR.

Bridgepoint acquired the online cycling and tri-sports retailer from previous owners ISIS Equity Partners. The new investment was made through the private equity firm's fund Bridgepoint Europe IV, which closed at €4.8bn in 2008. The purchase price represents a 16x historic EBITDA multiple and 12x prospective EBITDA investment. Wiggle's management is also set to inject a substantial sum of capital into the company.

The acquisition follows ISIS' strategic review of the company, which began in March and was overseen by Rothschild. An IPO was considered but auction was preferred.

Bridgepoint was attracted by the company's consistent sales and EBITDA growth over the last three years, as well as the shift to online retailing and growing consumer interest in fitness and healthy living.

Debt
Senior debt was provided by HSBC and Investec.

Previous funding
Isis Equity Partners previously owned a 65% stake in the company, having invested £12.25m in August 2006. Isis has reaped a 15.1x return on the investment and 69% IRR.

Company
Wiggle was founded in 1999 as a cycling accessories retailer but by 2003 expanded into the running and swimming retail sector. The company's website is available in nine languages, accepts transactions in 15 currencies and makes sales in 88 different countries.

In the year ended 31 January 2011, Wiggle reported a 55% increase in sales, which totaled £86.6m and a 40% EBITDA growth totaling £10.5m.

Wiggle employs nearly 200 staff in its Portsmouth office and has recently opened a London office.

People
Partner Vince Gwilliam worked on the transaction for Bridgepoint, along with Mark Advani, Adam Holloway and Amy Yateman-Smith for ISIS.

Former Asda chief executive Andy Bond is Chairman of Wiggle, with Humphrey Cobbold as CEO.

Advisers
Equity - Nomura (Corporate Finance), Javelin (Market Due Diligence), KPMG, Gareth Knee and Nicole Navon (Financial Due Diligence), Clifford Chance (Legal).
Vendors - Rothschild, Majid Ishaq and John Byrne (Corporate Finance), Eversheds, Keri Rees, Steven Hacking (Legal).
Management - Eversheds (Legal), Jamieson Corporate Finance (Corporate Finance), PWC (Tax).