BGF invests £2.8m in Arran Aromatics

Karin Wasteson
29 August 2013

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The Business Growth Fund (BGF) has invested ТЃ2.8m and taken a minority stake in Arran Aromatics, a Scottish luxury toiletries company.

The fresh capital will be used for brand development and IT infrastructure upgrades, as well as real estate and e-commerce investments.

Following several months of co-operation between BGF and Arran Aromatics, Alastair Kerr has been appointed chairman. Kerr is ex-head of Body Shop's EMEA operations, as well as holding previous board positions at White Stuff, Fuller Smith & Turner and Alliance Trust.

The financial performance of Arran Aromatics has fluctuated during the past 10 years and the business was rescued from bankruptcy in 2009 by turnaround expert Iain Pittman.

This transaction constitutes BGF's sixth investment in Scotland, where the firm has deployed £26.9m since inception.

Previous funding
Highland & Islands Enterprise, Scottish Enterprise and Scottish Development International have all previously invested in Arran Aromatics.

Company
Founded in 1988 by Janet and Iain Russell on the Isle of Arran, off the west coast of Scotland, Arran Aromatics manufactures luxury toiletries, lifestyle products and gifts.

Arran Aromatic's footprint includes 10 retail stores with plans to increase the number to 14 within the next couple of years. The company creates products for hotel groups including Abode Hotels, Macdonald Hotels, Cameron House and the DeVere Group.

With 120 employees, Arran Aromatics has a presense in more than 30 countries and is said to be one of Scotland's largest exporters to Saudi Arabia.

People
Duncan Macrae is an investment director at BGF and will take a seat on the company's board. Iain Pittman is chairman of Arran Aromatics.

Advisers
Equity – Johnston Carmichael (Financial due diligence); Brodies (Legal).
Company – Campbell Dallas (Financial due diligence); Bannatyne Kirkwood France & Co (Legal).