LDC, the mid-market private equity investor, has completed the sale of ZyroFisher, the leading cycling parts and accessories distributor, to Palatine Private Equity in a deal that provides significant additional equity funding to support its ongoing growth strategy.
As part of the deal, LDC has reinvested alongside Palatine to continue its support of the firm’s expansion.
ZyroFisher was originally formed in April 2016, when LDC backed the management buyout of Zyro and supported the simultaneous acquisition of Fisher Outdoor Leisure. Based in Darlington, the business supplies major retailers such as Wiggle, Halfords and Evans as well as over 2,000 independents, providing a route to market for dozens of specialist brands with best in class sales, marketing, distribution and customer services support.
Over the past 18 months, the team has successfully integrated the two separate companies and now represents the largest portfolio of market leading brands in the UK and Ireland. With LDC’s support, it has attracted new brands, developed its proprietary apparel brand Altura, expanded its distribution capabilities and strengthened its senior team. The business now has annual sales in excess of £75m and has built an even stronger platform for future growth.
Matthew Barker, CEO of ZyroFisher, said: “This is an exciting development for the business, our retail customers, our brand partners and our team. Bringing on board additional investment now means we have further financial firepower and can accelerate our expansion plan.
“LDC’s financial, strategic and operational support over the past 18 months has been invaluable in the successful integration of Zyro and Fisher, allowing us to capitalise on the combined strengths of the businesses and invest for long-term growth. Having such a supportive partner on board during the next phase of our journey alongside Palatine gives us the confidence to scale up our plans.”
John Garner, Head of LDC in Yorkshire and the North East, and Ben Snow, Investment Director led the original investment. John Garner added: “We’re excited to be continuing our support for the business and helping the team fulfil its ambitions. Since we backed the business in 2016, ZyroFisher has significantly outperformed its business plan and bringing on board additional investment at this stage enables us to bring forward plans, capitalising on significant growth opportunities.
“The deal is another example of our appetite to support companies over the long-term with the right funding structure to help them fulfil their potential.”
LDC was advised by KPMG (corporate finance and transaction services), PwC (commercial due diligence) and Squire Patton Boggs (legal).
Management was advised by Sentio (corporate finance), Freeths (legal) and Saffery Champness (tax).
Additional debt funding was provided by European Capital alongside its Lloyds Bank Commercial Banking facilities.