Funds advised by Magenta Partners (Magenta), an investor in high growth businesses, have invested in JoJo Maman Bébé, the specialist multi-channel baby, nursery and maternity retailer for a minority stake in the business.
Magentas’ principal founder investors are the Singh Family Trusts. Tom Singh, founder of New Look, is one of the UK’s leading retail entrepreneurs.
JoJo Maman Bébé has seen a 50% increase in sales from £18 million to £27 million in the two years from July 2009 to June 2011. Pre-tax profits have increased from 4% in the year ending 2009 to a forecast of 8% for year ending June 2011 and there has been a 33% increase in employment, with the business now consisting of 350 employees, up from 241 in June 2009.
Chase Emson, partner of Magenta who joins the Board of the company comments: “This business presents a fantastic opportunity for us to work alongside an exciting and entrepreneurial management team in the next stage of growth for this niche multi-channel retailer. JoJo Maman Bébé operates in a growing sub-sector of the apparel retail market, with a focus on quality, ethics and value that has helped build a strong market-leading brand.
“We intend to work with the management team to help expand the business in the UK and capitalise on international growth opportunities. Our extensive experience within the retail sector will enable us to bring incremental value to this already successful business.”
JoJo Maman Bébé was founded in 1993 by female entrepreneur and managing director Laura Tenison, who was named Veuve Clicquot businesswoman of the Year in 2010 and was awarded an MBE for services to business in 2004. Tenison launched the business as a specialist maternity wear and baby clothing company and in the past six years the retail business has grown organically into a multi-channel operator, now with 36 stores across the UK and employing 350 people.
Laura Tenison, founder and managing director of JoJo Maman Bébé comments: “This is a unique business founded on a strict moral and ethical code of conduct. We have traded well throughout the economic downturn with positive LFL figures. Despite being courted by equity funds for many years we have only now found our ideal financial investor who rates these core brand values. We are delighted to be working with Magenta to grow the business in a sustainable manner and open up new opportunities that were out of the reach of our organic growth plan.”
Laura Tenison was advised on the investment by the consumer team at Clearwater Corporate Finance, who sourced the right equity backer for JoJo Maman Bébé and structured the deal with Magenta.
Richard Shaw from Clearwater comments: “We had long been admirers of Laura Tenison and the way in which she and the management team have developed such a successful multi-channel retail model. Laura has found the right investor that will provide growth capital to the business and Magenta will work alongside Laura to strengthen the management team and grow the business. This deal is testament to the faith that private equity investors continue to show in the consumer sector for businesses with a strong proposition and brand.”