Duke Street Capital (“DSC”) has acquired The Original Factory Shop for £68.5 million.

The Original Factory Shop is a value retailer, headquartered in Burnley, Lancashire.  It has 84 outlets across the UK selling a wide range of discounted merchandise including Ladieswear, Menswear, Childrenswear, Sportswear, Footwear, Electricals, Housewares, Toys & Gifts, Beauty and Fragrance. Much of what is sold is either branded or was originally made for other high street stores and supermarkets.

The Original Factory Shop was established in 1969 as part of Peter Black’s, selling over-makes and seconds produced for Marks & Spencer. Its outlets are predominantly located in small towns and offer its customers the benefits of a department store that would not normally trade in such locations.

The Original Factory Shop has grown strongly over the last few years. It is a robust business in a growing sector with a very defensible market position. Following the acquisition, DSC will actively support the management team as it continues to accelerate its store roll-out programme across the United Kingdom.

DSC has successfully invested in several businesses in the retail and consumer sectors, most recently having acquired Sandpiper CI (formerly CI Traders), the largest retailer in the Channel Islands, and Oasis Healthcare, one of the leading chains of dentists in the UK. Working closely with a highly experienced and capable management team led by George Foster and with the support of its experienced Operating Partners, DSC is well placed to provide The Original Factory Shop with strategic and financial support as it enters its next phase of development.

DSC was advised by McQueen Limited, SJ Berwin, Javelin Group and PwC Transaction Services and the vendor was advised by KPMG Corporate Finance and Addleshaw Goddard. Barclays Leveraged Finance and Kaupthing Singer & Friedlander are providing the debt facilities for the acquisition.

Tim Lebus, Partner, DSC comments:

“We are delighted with the acquisition of The Original Factory Shop. George Foster and his team have developed the business into one of the country’s most innovative value retailers.  The long-term prospects for the value-retail sector are excellent and we are very excited at the opportunity of working with George and his colleagues. We look forward to supporting them on the next stage of Factory Shop’s growth as they accelerate their roll-out programme across the UK.”

George Foster, Factory Shop’s CEO comments:

“The Original Factory Shop has already carved out a real niche for itself in the value retail market. We are looking forward to working with Duke Street and are sure that our combined experience puts us in a great position to deliver on our growth plans. We are looking forward to increasing the number of our stores throughout the country and continuing to build on our previous success.” 

Enquiries:

Duke Street Capital                                                                               +44 20 7451 6600

Tim Lebus, Partner/ Oliver Mayer, Investment Director

The Original Factory Shop                                                                     +44 78 4143 0470

George Foster, CEO

Equus                                                                                                   +44 20 7223 1100

Piers Hooper / James Sumpster