KCP makes £5m investment in Dwell
The Birmingham office of private equity house Key Capital Partners (KCP) has provided expansion financing to home furniture retailer Dwell with a £5m equity investment for a minority stake in the company.
The investment will support Dwell’s expansion plans, as the company plans to launch 33 new high street outlets over the next four years.
Sales at Dwell for the year to 31 January 2010 totalled in excess of £25m. The company, which has grown from founder Aamir Ahmad’s single store in Balham, London, invested in its senior management team in order to drive its expansion plans. Neil McCausland, current chairman of Kurt Geiger, TJ Hughes and Skin Clinics, was appointed as chairman. In addition, Simon Tutt joined as finance director and Robyn Clifford joined as buying and merchandising director.
KCP partner Andy Gregory said: “The challenges facing UK retail over the last two years have been well documented, but Dwell has emerged from the turbulence in a far stronger position due to its first class management team and proven product offering.
“The business is performing strongly and we look forward to working with Aamir to expand the business significantly over the coming years, in line with its ambitions.”
The corporate team at Cobbetts provided KCP with legal advice, while BDO provided the private equity firm with financial due diligence.
