Private equity firm True Capital has announced the majority acquisition of Blackbird Retail Holdings, owner of independent furniture retailer The Cotswold Company, for an undisclosed sum.
True Capital confirmed that the firm will partner with the existing management team, with the view of accelerating Cotswold’s online growth, as well as expanding its product and category ranges and to increase its showroom footprint across the UK.
Gordon Segal, founder of the US based $1bn turnover furniture retailer Crate&Barrel, whose family office, Prairie Management Group, is a significant investor in the True Capital fund, will play an active role in the company, particularly around product, real estate and supply chain following the transaction.
Market research from Verdict and Forrester suggests that the online retail furniture market is expected to grow by 13% to 2020, indicating that The Cotswold Company’s current platform will benefit from the ongoing channel shift.
The company handles over 100,000 orders every year from its 170,000sq ft warehouse in Wednesbury, and has generated annual revenues in excess of £35m, delivering strong annual sales and EBITDA growth over the last four years.
True Capital said that with its support it is ‘very well positioned’ to continue that trajectory.
Matt Truman, CEO and co-founder of True Capital, said: “In The Cotswold Company we identified a strong business exposed to the right structural growth trends, with excellent financial metrics, driven and executed by exceptional founders and a world class management team.
“Gordon Segal’s involvement in this acquisition is another great example of our sector ecosystem and I am sure he will prove to be a fantastic asset for the company going forward. We are looking forward to working closely with Kevin and the management team to build and scale the business over the coming years to become a true market leader.”
Kevin Johnson, CEO of The Cotswold Company, said: “In True Capital we have found a partner to take our business to the next level, whilst allowing us to adopt new technologies that will benefit our customers’ experiences. We are delighted to have them on board and look forward to growing the business with them over the coming years.”
True Capital was advised by Jones Day and PwC. The shareholders of Blackbird Retail Holdings were advised by Livingstone Partners, JDC Corporate Finance and Pinsent Masons.