JoJo Maman Bébé sells minority stake
Private equity firm Magenta Partners to join the board
Magenta Partners, the private equity firm, has taken a minority stake in JoJo Maman Bébé (JMB), the baby, nursery and maternity retailer.
JMB was advised on the investment by Clearwater Corporate Finance, which sourced a suitable equity backer and structured the deal with Magenta.
Launched in 1993 by Laura Tenison, JMB offers specialist maternity wear and baby clothing. In the last six years the retail business has grown organically into a multi-channel operator with 36 stores across the UK.
JMB has seen a 50% increase in sales from £18m to £27m 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.
Magenta’s founding investors include the Singh Family Trust, backed by New Look founder Tom Singh. The private equity firm plans to work with JMB’s management team to help expand the business in the UK and capitalise on international growth opportunities.
As part of the deal Chase Emson, partner of Magenta, joins the board of JMB. He said the 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”. Laura Tenison commented: “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.”