Under Kester Capital’s possession since 2018, Jollyes has undergone a major transformation and is now one of many quickest rising bodily retailers within the UK:
- Jollyes’ community of shops has expanded from 64 to 100
- Jollyes has greater than doubled its worker base to over 1,200
- Jollyes has constantly delivered market-leading, double digit like-for-like development
- Revenue and revenue have greater than doubled since Kester Capital invested
Jollyes’ robust monetary efficiency has been underpinned by its differentiated proposition – a concentrate on worth and customer support – and the constructive long-term fundamentals of the UK pet retail market during which it operates.
The sale of Jollyes delivers a return on Kester Capital’s funding of 4.2x and an IRR of 29%. This represents Kester Capital’s third consecutive exit over 4x and the seventh consecutive exit over 3x.
Adam Maidment, Managing Partner at Kester Capital, stated: “I’m incredibly proud of what we have achieved with Jollyes. We have doubled the workforce, doubled the revenue and more than doubled the profitability, building one of the largest specialty pet retailers in the country. It’s a great success story and exactly the kind of value creation story Kester is about.
“It has been a pleasure to work alongside Joe, Richard and the wider team over the last six years. We wish the management team and the business every success for the future.”
Joe Wykes, CEO of Jollyes, stated: “Kester Capital has been a strong partner for Jollyes over the last six years, and an invaluable adviser to me since I joined.
“We have valued their expertise and guidance as we accelerated our growth plans, and are grateful for their support and the foundation they’ve built for the next chapter in our story.”
During its funding interval, Kester Capital recruited a excessive calibre administration crew, led by CEO Joe Wykes and Chairman Richard Cotter, who’ve overseen a broad programme of repositioning and operational enchancment. This is mirrored in: a loyalty programme with market-leading participation charges; a cloth enlargement in Jollyes’ personal model providing; the roll-out of veterinary and grooming providers throughout the shop property; and sustaining a Trustpilot rating of 4.8, effectively forward of friends. The business additionally accomplished various bolt-on acquisitions to complement natural development and transitioned to central distribution underneath Kester Capital’s possession.
TDR Capital’s funding, alongside reinvestment by administration, will allow Jollyes to proceed its success as an unbiased business.
Kester Capital was suggested by Houlihan Lokey (M&A), PwC (monetary and tax) and Osborne Clarke (authorized). TDR Capital was suggested by HSBC and Barclays (M&A), PwC (monetary and tax) and CMS (authorized). Management was suggested by Jamieson (monetary), Blick Rothenberg (tax) and Osborne Clarke (authorized).
The transaction is anticipated to shut in March.
