Wed, 28 Feb 2024 | BUSINESS SALE
Pet retailer Jollyes Retail Group is set to be sold to a new private equity backer. The company, which is the UK’s second-largest pet retailer, is being sold by Kester Capital to TDR Capital after seeing significant growth over recent years.
Jollyes has been owned by Kester Capital since 2018, and has since established itself as one of the UK’s fastest-growing physical retailers, with its network of stores expanding from 64 to 100 and employee headcount more than doubling to in excess of 1,200 staff.
The company has also completed a number of bolt-on acquisitions under Kester Capital’s ownership to supplement its organic growth, as well as transitioning to central distribution. Since Kester Capital’s investment, the company’s revenue and profit have more than doubled.
Kester Capital’s exit is set to deliver a return on investment of 4.2x and an internal rate of return (IRR) of 29 per cent. The deal with TDR Capital is set to complete in April and will see Pepco Group Executive Chairman Andy Bond join Jollyes as non-executive chairman. TDR Capital will take on a majority stake in the business, alongside Andy Bond and the management team.
TDR Capital Managing Partner Gary Lindsay said that the deal would “provide even more momentum behind the strong growth of recent years.”
He continued: "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."
Joe Wykes, Chief Executive of Jollyes, added: “Kester Capital has been a strong partner for Jollyes over the last six years, and an invaluable adviser to me since I joined. We have valued their expertise and guidance as we accelerated our growth plans, and are grateful for their support and the foundation they've built for the next chapter in our story."
He added: "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.”
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