BGF inks £3.2m Cass Art deal

Alice Murray
16 December 2013

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The Business Growth Fund (BGF) has invested ТЃ3.2m in arts material retailer Cass Art in exchange for a minority stake.

The investment will be used to support the roll-out of new stores across major UK cities over the next five years and to develop Cass Art's online offering.

According to the BGF, the UK arts material market is fragmented, with only a few retailers accounting for a quarter of total sales. Another attraction to the market is its growing popularity with students; around 10% (180,000) of all UK university students are studying art, with enrolment having increased by 25% between 2004 and 2010.

Company
Established in 2001 by Mark Cass, Cass Art operates through six stores across London - these are based in Hampstead, Charing Cross, Kingston, Soho and a flagship store in Islington. The company employs 90 people.

Cass Art is aiming to target a younger audience by making art more accessible through workshops and relative affordability. Furthermore, it holds partnerships with several London institutions and universities, including the National Gallery, the Royal Academy of Arts, the Royal College of Art, Design Museum and the Institute for Contemporary Arts as a way of attracting younger customers.

People
Cass Art CEO Mark Cass was previously managing director of Craftsmith, which his family acquired from WH Smith in 1979. Cass and his father Wilfred Cass co-founded the Image Bank UK in 1979 - the film and stock photography library was sold to Getty images in 2000.

Sir Stuart Rose, who currently sits on Bridgepoint's European advisory board and whose previous roles include CEO of Marks & Spencer, chairman of Hamleys, managing director and deputy chairman of Body Shop and chairman of Agent Provocateur, has joined the Cass Art board as non-executive chairman. BGF investment director Rory Pope has also joined the board.

Advisers
Company - Keystone Law (Legal)
Equity - Speechly Bircham (Legal); Baker Tilly Corporate Finance (Financial due diligence).