A £10 million retail investment from the Business Growth Fund (BGF) has seen the bank-backed fund add Better Bathrooms to its portfolio.
The equity backing from the BGF will be used by Better Bathrooms to explore alternative source supplies and grow its presence in adjacent markets and new geographies.
Better Bathrooms was set up by in 2001 by Colin Stevens, a business builder who has recently been awarded the regional and national entrepreneur prizes at the National Business Awards.
The retailer sells bathroom products direct to consumers through three showrooms in the North West, as well as online and telephone mail order catalogue.
Stevens comments, ‘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 £200 million.’
As part of the deal, the BGF will be taking up a minority stake in the business and has also continued with its trend of introducing an independent non-executive to the board. Paul Gilbert, the non-executive chairman of The Gym Group and former managing director of Matalan, will be joining as non-executive chairman of Better Bathrooms.
More on the Business Growth Fund:
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- BGF kicks off 2013 with oil and gas investment
- Stephen Welton – BGF looking to stand test of time
Better Bathrooms believes that the investment will allow it to create 500 new jobs across the UK over the coming five year, following a five-year period since 2007 when it grew turnover from £1 million to £32 million. The business is targeting £40 million within the next 12 months.
David Colclough, investment director at the BGF, adds, ‘Better Bathrooms was the first UK business to carve out a position as a true multi-channel retailer of bathroom products.
‘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.’
The BGF has now invested £30 million into the North of England through six transactions. Other businesses in the region to receive capital from the £2.5 billion bank-financed fund include pub chain Wear Inns, domiciliary care provider Springfield Healthcare Group and Mexican food business Barburrito.