UK Spring 2021 corporate finance deals round up: direct to consumer

The UK corporate finance team has continued the momentum in deal activity from last year into the start of 2021. During the first quarter, we’ve advised new and long-standing clients on a range of deals. Below we highlight some of the consumer brands we’ve recently supported that have turned their customers into loyal fans by combining great products, brand values, e-commerce capabilities and outstanding service levels.

Pangaea

We advised the shareholders of Pangaea Laboratories (“Pangaea”), a global beauty business and owner of the fast-growing Medik8 skincare brand, on investment from Inflexion. This transaction has generated some of the highest multiples ever paid in the global beauty industry. Founder-led since 1999, the investment from Inflexion will enable the team to scale the business further by enhancing their digital routes to market, and by supporting their continued innovation, new product launches and international expansion.

Sigma Sports

We advised the shareholders and management of Sigma Sports, the UK’s leading premium omni-channel retailer of cycling equipment, on the sale of a minority stake in the business to Primary Capital (“Primary”), with debt funding provided by HSBC. Founded in 1992 by Ian Whittingham and Jason Turner, Sigma Sports has established an unrivalled position in the UK cycling industry due to its portfolio of premium brands and exceptional customer service. Primary will support Sigma Sports’ plans to expand its online and physical retail presence.

FFX

FFX is a fast-growing specialist online tools and accessories business serving construction and DIY sectors within the UK and Europe. We advised H2 Equity Partners on its investment in FFX, enabling an exit for Foresight Group. Initially founded as a traditional ‘bricks and mortar’ supplier, FFX now goes to market through five different channels, including FFX.co.uk, eBay, direct technical sales, wholesale/export and branches. The investment in FFX demonstrates the significant levels of appetite we are seeing from private equity investors and strategic acquirers for Covid resilient businesses.

Absolute Collagen

We advised the founder of Absolute Collagen, the UK’s leading marine collagen supplement provider, on its minority investment from Livingbridge. The investment will help the business to increase its consumer reach, broaden its product range and expand internationally.