Retailer Jollyes has secured significant backing from investment funds managed by TDR Capital LLP to enable it to accelerate its UK store growth plans.
The agreement marks the exit from the business of Jollyes’ former backer Kester Capital. The sale of Jollyes delivers a return of 4.2 times Kester Capital’s original investment, says the firm.
The deal with TDR Capital is expected to complete in April with Andy Bond , currently executive chairman of Pepco Group and a former deo of Asda, due to become non-executive chairman.
On completion of the investment, TDR Capital will take a majority stake in Jollyes alongside Andy Bond and management. The retailer claims it represents the biggest structural development in the UK pet market in a decade, and Jollyes intends to use TDR’s investment to open more stores, complete with services such as grooming and community pet clinics.
Jollyes has grown its estate by 50% in three years, opening 33 stores in 26 months, and is due to open its 100th store in Newport, South Wales, on March 1. The retailer plans to open an additional 12 new stores over the next 12 months and already has agreements secured for locations in Northampton, Nuneaton, Chester and East Kilbride.
As well as helping to expand the store estate, the new investment will create more career development opportunities for the Jollyes team, including new roles with broader responsibilities, and new opportunities for suppliers, the company says.
Jollyes chief executive officer Joe Wykes said: “Jollyes has been growing at pace over the past two years, with our people providing pet parents a level of expertise and service that is hard to find.
“This new investment will help us build a much bigger stage, accelerating our growth plans and giving us the resources we need to bring more value to more places.
“We look forward to partnering with TDR on the exciting next phase of our growth in the UK.
“I’d also like to thank our chairman Richard Cotter for its stewardship of this business over the last six years and formally welcome Andy Bond to our board.
“Andy’s retail credentials and ‘know-how’ in the value sector make him an ideal chair for Jollyes, customers and colleagues. I’m looking forward to his counsel and guidance as we continue to grow at pace.”
TDR Capital is a European private equity firm with over €15 billion of assets under management. Founded in 2002, TDR has managed five European mid-market buyout funds and made 24 platform investments. Its portfolio companies employ over 270,000 people around the world.
Gary Lindsay, managing partner at TDR Capital, said: “It is fantastic to be partnering with Joe and the Jollyes team to provide even more momentum behind the strong growth of recent years.
“In Jollyes, we identified a solid business with excellent foundations and significant potential to grow even more ambitiously in the years to come.
“Through our investment, we will deploy our significant retail expertise and support the company in rolling out its store expansion plans even more rapidly, including opening more grooming and veterinary-led community pet clinics.
“We are confident that Jollyes can further cement itself in the pet retail sector and increase the competitiveness of the market, which will benefit customers, colleagues and suppliers alike.”
Adam Maidment, managing partner at Kester Capital, added: “I’m incredibly proud of what we have achieved with Jollyes. We have doubled the workforce, doubled the revenue and more than doubled the profitability, building one of the largest specialty pet retailers in the country.
“It’s a great success story and exactly the kind of value creation story Kester is about.
“It has been a pleasure to work alongside Joe, Richard and the wider team over the last six years. We wish the management team and the business every success for the future.”
