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Could Hobbycraft be sold?

18th Jul 16 10:53 am

How much money will it fetch?


Source: Photoshot

Much interest has arisen in Hobbycraft, the British retail chain specialising in arts and craft, following suggestions that its owner may be looking to sell all or part of the company, as it accelerates in expansion.

Hobbycraft was bought by Bridgepoint for a little in excess of £100m in 2010 and has started to grow rapidly. It now has 83 stores and last year generated pre tax profit of £10.9m on sales of £151.8m.

Management is believed to have ambitious plans to accelerate growth in a way that will require significant capital investment. Rumours indicate that Bridgepoint is considering selling a stake in the business to support that investment, and speculation suggests that it may be considering an outright sale. This would be likely to establish a healthy profit.

It is thought that both private equity and trade buyers would beat a hasty retreat to whoever is selected to advise Bridgepoint on the sale, given the rapid growth of the industry and Hobbycraft’s strong customer base and excellent marketing skills.

Any sale process is thought to be in its very early stages. It is not thought that an adviser has yet been appointed and Bridgepoint has not made any comment.

This story first appeared on Acquisitions Daily, a leading publication that provides critical comment, analysis and statistics on every important issue in acquisitions, mergers and buyouts. Sign up here for a free trial.

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