TM Lewin management, backed by Bain Capital affiliate Sankaty Advisors, has bought out Caird Capital’s 20% stake in the business.
TM Lewin’s management already owned 80% of the business, which is made up of chief executive Geoff Quinn’s 30%, and the rest of the management’s 50%.
The shirtmaker declined to disclose how much the 20% stake was worth, but it is thought the deal values the business, which has 185 stores globally, in the region of £100m.
US investor Sankaty now owns a minority stake in TM Lewin.
Caird Capital acquired its stake in 2006, when it backed a management buyout led by Quinn, who is still at the helm.
TM Lewin, founded in Jermyn Street in 1898, has also refinanced alongside the stake acquisition. Sankaty provided mezzanine debt and equity for the transaction, with Lloyds Banking Group providing senior debt.
Quinn said: “Sankaty has consistently demonstrated that they have a detailed understanding of both our industry and our company. Not only will they provide us with a much more flexible capital base to support our growth, but their sector expertise will be hugely beneficial in delivering on our vision for the future which aims to put our customers and products firmly at the centre of our business.”
David Brooks, an executive vice-president on Sankaty’s European team, described TM Lewin as a business “with great potential to expand its existing international and online presence”.
TM Lewin reported a pre-tax profit of £636,000 in the year to March 1, 2014, up from a loss of £1.4m the previous year. Sales nudged up to £106.8m, from £106.7m.
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