Thursday 13th December 2007
Duke Street Capital acquires discount retailer
The Original Factory Shop, a Lancashire-headquartered retailer with 84 outlets across the UK, has been acquired by private equity firm Duke Street Capital for £68.5 million. Duke Street is backing the existing management team and will accelerate the company’s plans to open new stores.
The debt facilities for the transaction are being provided by Barclays Leveraged Finance and banking group Kaupthing Singer & Friedlander.
Established in 1969, The Original Factory Shop used to be part of discount retailer Peter Black’s, selling seconds produced for Marks & Spencer. Its outlets are predominantly located in towns that are too small to have their own department store.
Duke Street says the company has grown strongly over the past few years under CEO George Foster’s stewardship and is ‘a robust business in a growing sector with a very defensible market position’.
The private equity firm’s recent experience in the retail and consumer sectors includes its £260 million acquisition of Channel Islands retailer Sandpiper CI and the £77 million purchase of dental care business Oasis Healthcare, both this summer. Founded in 1988, Duke Street focuses on mid-market leveraged buy-outs in the UK and France, and manages funds of £1.4 billion.
Nick Britton
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