HobbyCraft acquired by Bridgepoint
HobbyCraft, the UK’s leading out-of-town art and craft retailer, has been acquired by Bridgepoint in a management buyout for an undisclosed sum.
Founded in 1995, HobbyCraft has 47 out of town stores throughout the UK and is the first national arts and crafts retailer to cater for more than 250 different activities all under one roof. It appeals to both children and adults alike, providing a breadth and range of hobbies unmatched by its competitors.
Chris Crombie, CEO of HobbyCraft, believes that with this deal, the company will be able to accelerate its expansion plans and will benefit from the funding and focus an experienced investor in the specialist retail market such as Bridgepoint will bring.
He said: “We have always been very ambitious for HobbyCraft and have developed the business to become the leading specialist in its field, but there is significant growth capacity and roll-out potential yet to come which we look forward to achieving in the next five years and beyond.”
The arts and crafts market in the UK is estimated to be a £2 billion marketplace comprising a range of operators from specialist independents serving a single activity to large generalists carrying limited ranges of products. HobbyCraft, as the leading player in the space, carries over 35,000 products.
Jason McGibbon, who leads Bridgepoint’s investment activities in the consumer sector, believes that HobbyCraft has many of the features required to make it a compelling specialist retail opportunity, with a growth trajectory ahead of many of its retail peers.
“HobbyCraft is a quality business with great potential. We have tracked its progress for some time and believe that there is now significant scope for the business not only to grow through further rollout in the UK and development of its store format but also to create a significant multi-channel online presence.” he said.
Advisers involved in this transaction include: for Bridgepoint – Deloitte (financial & tax), Travers Smith (legal), Circus (commercial), ERM (environmental), Marsh (insurance), Harvey Spack Field (property); for management - Argyll Partners (corporate finance), Allen & Overy (legal); for vendor – Grant Thornton (corporate finance), Lamport Bassitt (legal), KPMG (vendor due diligence), Javelin (commercial due diligence).