TA Associates, a leading growth private equity and buyout firm,
today announced it has completed a majority investment in M and M
Direct Ltd, the leading online and mail order retailer of discounted
lifestyle, fashion and sports apparel and footwear in the UK. M and M
was formerly majority owned by its founders and ECI Partners. Terms of
the transaction were not disclosed.
Based in Leominster, M and M specializes in purchasing end-of-line
clearance stock from major brands and selling those products at
substantial discounts. The company was founded in 1987 as M and M
Sports, selling solely sports apparel. Following the management buyout
backed by ECI in 2004, M and M expanded its product line to include
fashion and lifestyle clothing. M and M now sells more than 230 brands
of men´s, women´s and children´s apparel and footwear, including
Adidas, Animal, Bench, Levis, Miss Sixty, Nike, Puma, Quiksilver,
Reebok, Timberland and Vans.
Steve Robinson, formerly CEO of Tesco Direct and previously
Finance Director of Argos, will join M and M as CEO, taking over from
Mike Tomkins who has led the company under ECI´s ownership. Mike will
remain very actively involved with the company as a non-executive
director, managing key brand relationships as well as leading various
operational and strategic initiatives.
"We are delighted to partner with a distinguished private equity
firm like TA, and to welcome Steve Robinson to M and M," said Tomkins.
"TA´s expertise in helping profitable companies accelerate growth, and
Steve´s considerable online and catalogue retail sales experience, are
a great combination for M and M, and I look forward to working with
them both to take the business to the next level."
Robinson commented, "I am delighted to join a business with such
strong momentum. Mike and the team have developed a well recognized
brand known for delivering quality products at a great value, and I
look forward to building on these achievements."
Internet research group IMRG estimates that online shopping in the
UK will reach GBP 42 billion in sales in 2007, up 39% from GBP 30.2
billion in 2006, and will grow to GBP 78 billion by 2010. Chris
Parkin, who led the transaction for TA Associates and will join the
company´s Board commented, "With a compelling customer proposition, a
unique distribution channel for suppliers, and substantial exposure to
the online retail market, M and M is well-positioned to continue its
strong growth."
"M and M fits very well with TA´s growing focus on online growth
businesses with strong consumer brands," said Ajit Nedungadi, Managing
Director of TA Associates, who will also join the company´s Board of
Directors. "We look forward to working with Steve, Mike and the rest
of the team to build further value in the company."
David Ewing, ECI Partners Director commented, "Thoughtful
repositioning and re-branding, coupled with the increasing acceptance
of the Internet as a channel, has resulted in strong growth for M and
M. We are very pleased to have contributed to the company´s growth,
and wish Mike and the team continued success."
TA Associates, which has more than 39 years of experience
investing in profitable, growth companies, has been an active investor
in the European markets with numerous investments, including Jupiter
Asset Management, SmartStream Technologies, eDreams, GlobeOp Financial
Services, IntercontinentalExchange, ION Trading Group, Sophos Plc and
Tempur-Pedic International. The firm opened its London office in 2003
and is continuing to expand its investment efforts in Europe.
MacFarlanes provided legal counsel to TA Associates. Eversheds
provided legal services to M and M.
M and M Direct
M and M Direct Limited is the UK´s leading purchaser of
end-of-line clearance for fashion and sports products. As an online
and mail order retailer, M and M offers sports and fashion apparel and
footwear for men, women and children, at substantial discounts. The
company´s website has over 100-plus brands, and receives 15 million
visitors per year. M and M distributes 19 million catalogues a year,
featuring great bargains. The company was founded in 1987 and is
headquartered in Leominster. More information can be found at
www.mandmdirect.com.
TA Associates
Founded in 1968, TA Associates is one of the largest and most
experienced private equity firms. With offices in Boston, London and
Menlo Park, the firm manages $10 billion in capital and has invested
in more than 380 companies. TA Associates provides management buyout,
leveraged recapitalization and growth equity capital primarily for
technology, financial services, business services, healthcare and
consumer businesses. More information about TA Associates can be found
at www.ta.com.
This document is approved for issue in the UK by TA Associates
Ltd., which is regulated by the FSA.
Safe harbor statement under the U.S. Private Securities Litigation
Reform Act of 1995: Statements made in connection with this release
which are not historical fact, such as forward-looking statements
concerning future financial performance and growth, involve risk and
uncertainties. Such statements are subject to various factors that
could cause actual results to differ materially from those set forth
in the forward-looking statements. Any forward-looking statements
represent the best judgment of TA Associates as of the date of this
release. TA Associates disclaims any intent or obligation to update
any forward-looking statements.
