Business Growth Fund backs Better Bathrooms with £10m investment
Funding set to create 500 jobs for fast-growing bathroom retailer
Investment fund Business Growth Fund (BGF) today announced a £10m investment in Better Bathrooms in order to accelerate further growth for the Manchester-based bathroom retailer.
Established in 2001 as an eBay business from founder Colin Stevens’ bedroom, Better Bathrooms has since grown into one of the UK’s leading multi-channel bathroom retailers, posting revenues of £32m in 2012 with this set to rise to £40m over the next 12 months.
The company was recently ranked at number 33 on the Sunday Times Fast Track 100, an index of the fastest-growing companies in the UK.
BGF will take a minority stake in the company and will join the board as part of the deal.
Former financial director of Matalan and non-executive chairman of the Gym Group Paul Gilbert will also join as a new non-executive chairman of the business.
The £10m backing is set to drive further growth for the retailer, with Better Bathrooms announcing it will create 500 jobs across the UK as a result of the deal.
Established in 2011 and backed by five of the UK’s largest banks, BGF’s investment in Better Bathrooms marks the sixth investment made by the fund in the north of England and brings the total invested in the region to £30m, with £140m of deals concluded across the UK.
Colin Stevens, founder of Better Bathrooms, said: “I’m thrilled to have BGF come on board with Better Bathrooms. For me, BGF were the ideal partner as we share the same values, with company growth and the creation of jobs being of paramount importance.
“I believe that with BGF’s investment and expertise, we will be able to take the company to the next level, expanding our factories and product lines, and ultimately hit our future growth target of £200m.”
David Colclough, investment director in BGF’s Manchester division, commented: “Better Bathrooms was the first UK business to carve out a position as a true multi-channel retailer of bathroom products. A leader in its space, it offers one of the largest and best value ranges in the UK.
“The growth that this company has demonstrated over the last twelve years has been outstanding. But Colin, who is an extremely passionate and driven entrepreneur, is keen to do it on a much bigger scale.
“This is where BGF comes in and it is a great example of how growth capital can really help a business with ambitions to expand.”