Private equity firm True Capital has acquired a majority stake in pure-play furniture retailer The Cotswold Company.
True Capital, which also owns Ribble Cycles and has stakes in LoveCrafts and Houseology, said it plans to accelerate The Cotswold Company’s online growth, expand its product and category ranges and increase its showroom presence in the UK.
Founded in 1996, The Cotswold Company currently generates around £35m in annual sales and takes over 100,000 orders a year.
True Capital said it will work with the etailer’s existing management team, including chief executive Kevin Johnson.
“In True Capital we have found a partner to take our business to the next level, whilst allowing us to adopt new technologies that will benefit our customers’ experiences,” said Johnson.
True Capital declined to disclose the exact size of the stake it has acquired or how much it paid for the etailer.
Chief executive Matt Truman said: “In The Cotswold Company we identified a strong business exposed to the right structural growth trends, with excellent financial metrics, driven and executed by exceptional founders and a world class management team.”
Gordon Segal, founder of US furniture retailer Crate&Barrel, whose family office Prairie Management Group is a True Capital investor, will play an “active” role in the company, particularly around product, real estate and supply chain following the transaction.
Segal said: “Having spent a long period of time with both True Capital and The Cotswold Company management team in recent weeks, I am absolutely confident Kevin and the wider team, with True Capital’s support, have the potential to build a very significant company.
”I am hopeful the experience I have gathered over the last 50 years building Crate&Barrel will be valuable to the team.”