Fast-growing pet goods retailer Jollyes has secured backing from investment funds managed by TDR Capital, the joint owner of Asda.
The deal is expected to be completed in April with retail veteran Andy Bond (Executive Chairman of Pepco Group and a former CEO of Asda) due to become Non-Executive Chairman.
On completion of the investment, TDR Capital will take a majority stake in Jollyes alongside Bond and the chain’s management. The investment is expected to help the business to continue to grow its store estate.
Jollyes Chief Executive Joe Wykes said: “Jollyes has been growing at pace over the past two years, with our people providing pet parents a level of expertise and service that is hard to find.
“This new investment will help us build a much bigger stage, accelerating our growth plans and giving us the resources we need to bring more value to more places. We look forward to partnering with TDR on the exciting next phase of our growth in the UK.”
Gary Lindsay, Managing Partner at TDR Capital, added: “It is fantastic to be partnering with Joe and the Jollyes team to provide even more momentum behind the strong growth of recent years.
“In Jollyes, we identified a solid business with excellent foundations and significant potential to grow even more ambitiously in the years to come. Through our investment, we will deploy our significant retail expertise and support the company in rolling out its store expansion plans even more rapidly, including opening more grooming and veterinary-led community pet clinics.
“We are confident that Jollyes can further cement itself in the pet retail sector and increase the competitiveness of the market, which will benefit customers, colleagues and suppliers alike.”
Under the group’s current owner Kester Capital (since 2018), Jollyes’ profits and sales have more than doubled, while its store footprint has risen from 64 to 100. The retailer plans to open an additional 12 new stores over the next year.
NAM Implications:
- This injection has to help Jolleys.
- With the added benefit of stability in that the deal is going ahead…
- …with full knowledge of higher interest rates.
