Primary Capital invest £42m into Tobar
Primary Capital has bought a 50% stake in the Tobar Group, the novelty gift and gadget company for £42m.
The deal will finance a nationwide roll-out of Tobar’s Hawkins Bazaar stores, adding a further 100 outlets to its current 22 existing stores, over the next five years.
Hawkins Bazaar, founded in 1973, sells low-price gifts and toys and has traded very profitably in recent years.
The deal has been backed by Lloyds TSB, who invested £22m into the deal, which was led by Graham Heddle from Primary Capital.
Corporate finance group, Livingstone Guarantee, advised Primary on the deal.
Neil Wallace, director of Primary Capital, said: “We were attracted to the investment the business is a multi-channel business combining a mix of retail outlets, mail order catalogue business and internet sales.
“Hawkins Bazaar is a well-known business and we think it is a very expandable concept.
“The business has grown considerably and we are backing the current management team as we feel they are fully capable of taking the business forward.”
Primary Capital also has a majority stake in Yo Sushi, which it bought from former Dragons’ Den entrepreneur Simon Woodroffe in 2003.
© Crimson Business Ltd 2006