£140m IPO of Joules generates stylish returns for LDC

Joules, a premium British lifestyle brand, has today commenced dealings on AIM following the successful pricing of its IPO earlier this week. The £140m listing on London’s AIM market has raised gross proceeds of approximately £77.5m.

LDC, which originally invested £22m in November 2013 to support Joules’ expansion, has generated gross proceeds of £53m on its investment, representing a money multiple of 2.4x. Following the IPO, LDC has reinvested for a 7 per cent holding.

Between FY2013 and FY2015, Joules increased revenue 50% to £116.4m driven primarily by its store roll-out (from 61 to 98*), increased sales within its wholesale accounts and expansion of its e-commerce business. In the same period, international revenues grew 198 per cent to £10.6m, underpinned by significant investments in the group’s infrastructure, including supply chain, IT, international sales support offices and people.

Tom Joule, Founder and Chief Brand Officer of Joules, said: “LDC has been an important partner to Joules in recent years supporting the implementation of management’s strategic plan which included significant investment in the infrastructure of the business and the retail store portfolio. We’re now ideally placed to continue the brand’s expansion by opening more stores in the UK and Ireland, growing the international business and increasing the product range for our loyal customers.”

Martin Draper, Chief Executive of LDC, said: “Tom, Colin and the entire team at Joules have achieved incredible success in recent years, thanks to their drive, focus and vision. They’ve created a powerful brand with distinctive design, premium positioning and loyal customers. As well as delivering outstanding results, they’ve also demonstrated how much potential there is for further growth. We wish the team every success for the future and look forward to being a continuing part of their story.”

He added: “Joules is also a perfect example of how private equity can act as a catalyst for growth, helping businesses and their management teams to prosper.”

Joules designs and sells Joules branded lifestyle clothing, accessories and homeware, operating a balanced multi-channel proposition which encompasses retail (stores and e-commerce), wholesale and other smaller channels such as the country shows and events circuit and licensing. It has a customer database of approximately two million customers and is a top selling wholesale brand in major UK retailers such as John Lewis and Next Label.

This is the fifth flotation for LDC in recent years and brings the total exit proceeds over the last 18 months to around £800m.

*as of 28 February 2016 (including five concessions and four franchises)

Notes to Editors

  1. LDC is the private equity arm of Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority.  
  2. LDC backs ambitious management teams from UK-based medium sized companies seeking up to £100m of investment to fund management buyouts or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure, Support Services, Construction & Property and Financial Services.
  4. LDC has a UK regional network with locations in Aberdeen, Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Newcastle, London, Manchester, Nottingham and Reading.