3i, the international private equity group, has acquired an unspecified minority stake in Go Outdoors, the large-scale U.K. outdoor retailer, by buying existing shares as well as newly-issued equity. It invested £28 million (€31.5m-$46.3m) in Go Outdoors, which will be used for the retailer's planned expansion from 30 to about 70 stores in the next four years.
The founders and managers of Go Outdoors are retaining significant stakes in the company, along with YFM Equity Partners. The fast-growing outdoor retailer's management is headed by Paul Caplan, president and largest shareholder of Go Outdoors, and John Graham, founder and managing director.
As part of the deal with 3i, the management team has been strengthened with Colin Holmes being elected by the new owners as chairman. Formerly at Tesco, Holmes replaces John Lovering, a private equity tycoon who joined Go Outdoors only last August. Lovering was reportedly involved in a failed attempt to buy Blacks Leisure Group, the leading outdoor retailer in the U.K. Furthermore, two representatives from 3i, David Whileman and Justin Maltz, will join the board of Go Outdoors.
Go Outdoors reported sales of £114.9 million (€129.3m-$189.9m) for the year until Jan. 30, up from about £75 million the previous year. Its concept is based on large, out-of-town stores with a wide assortment of outdoor products, including private labels and many other affordable ranges (more in The Outdoor Industry Compass next week).
