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TA Associates Completes Secondary
Buyout of M and M Direct
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Steve Robinson (left) and
Mike Tomkins (right) |
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 £42 billion in sales in
2007, up 39% from £30.2 billion in 2006, and will grow
to £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.
www.brandnation.co.uk
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