True Capital Acquires The Cotswold Company


True Capital has announced the majority acquisition of Blackbird Retail Holdings, owner of one of the UK’s largest online furniture retailers, The Cotswold Company.

The firm will partner with the existing management team to lead the company through its next stage of growth, using its sector specialist expertise to accelerate online growth, expand product and category ranges and increase The Cotswold Company’s showroom footprint across the UK.

Founded in 1996, The Cotswold Company was acquired by Blackbird Retail Holdings in a purchase led by Kevin Johnson and James Birtwhistle in 2009. The company sells high quality oak, pine, painted furniture and accessories with a market leading value proposition. The company handles over 100,000 orders every year from its 170,000 sq ft warehouse in Wednesbury. The business, which generates annual revenues in excess of £35m has delivered strong compound annual sales and EBITDA growth over the last four years, and with True Capital’s support it is very well positioned to continue that trajectory.

The Royal Bank of Scotland’s Corporate Transactions team provided the senior debt package for the transaction, plus committed working capital lines. The transaction was led by Stefan Gunn, Director in Corporate Transactions, and he comments: “We were delighted to be able to support management and True Capital on this exciting corporate development. The business is a leading player in the online furniture market and our expertise in acquisition finance and trade finance should support them to grow this channel, whilst also exploring new routes to market. Kevin and the wider management team are highly impressive and they will be augmented by True Capital’s vast expertise in the sector.”

Javelin Group completed Commercial & Operational Due Diligence for the vendors in this transaction.