MBO at corporate apparel business

Mid-market private equity investor LDC has backed the management buyout of the corporate apparel business of US-based Tailored Brands, Inc in a deal which values the group at £50million.

The group is the UK’s largest supplier of corporate clothing uniforms to businesses and individuals. It trades internationally through its Dimensions, Alexandra, Yaffy and Twin Hill brands.

Castle Donington-based Dimensions is a UK market leader in supplying corporate clothing solutions through multi-year managed service contracts. Dimensions has a portfolio of over 100 major client accounts and delivers uniforms to millions of wearers across multiple industry sectors both in the UK and internationally.

Collectively the group employs more than 800 people across its offices in Castle Donington, Thornbury, Glasgow and Houston, and for the current financial year it is on target to record combined revenues of more than £150million.

LDC is backing the current management team, Executive Chairman Stuart Graham, Group Chief Financial Officer Morgan Atherton, Dimensions Managing Director Hayley Brooks, and Alexandra Managing Director Martin Lyne, as they embark on the next stage of the firm’s growth strategy.

The corporate clothing group now plans to invest in its current service lines and infrastructure to accelerate organic growth at home and overseas, in addition to exploring complementary acquisitions to drive further international expansion.

The investment was led by LDC’s John Green, John Garner, Alistair Pendleton and Richard Ibbett.

John Green, Investment Director at LDC in Nottingham, said: “Every day more than four million people go to work in a uniform that has been produced by the group and that is a direct result of the ambition, hard work and dedication of the management team.

“Together they have built a business that is rooted in quality and a commitment to client service, and given the group’s scale and geographic footprint there is a huge opportunity to take the group to the next level. Our investment and support will now enable the team to inject capital into key growth areas and drive further expansion. We’re looking forward to helping them on the next phase of their journey.”

Stuart Graham, Executive Chairman of the Group, added: “We have been part of Tailored Brands for almost a decade and during that time we have built our business into a truly global player. With LDC as our growth partner, we can focus on investing in our proposition, take our market-leading products and service to more customers at home and overseas, and ensure our business has solid foundations for future growth.”

This investment marks LDC’s seventh corporate carve-out the firm has backed in 18 months, following its partnerships with Shield Group International, Precision Micro, Martin Audio, Retail Asset Solutions Group, NBS and BWML. The deals have a combined enterprise value of more than £200million.

LDC and the management team were advised by Clearwater International, Browne Jacobson and Eversheds Sutherland.

Debt facilities were provided by PNC Business Credit.