Member Article

True Capital acquires parent company of furniture retailer The Cotswold Company

Retail and consumer investment business, True Capital, has acquired Blackbird Retail Holdings, the owner of one of the UK’s biggest online furniture retailers, for an undisclosed sum.

The deal will see the London-based investment firm work with the current senior management team at Blackbird to help growth the presence, both online and in traditional bricks and mortar showrooms, of its The Cotswold Company furniture business.

Founded in 1996, The Cotswold Company has grown to become of the UK’s biggest online retailers of oak, pine and painted furniture, which led to its acquisition by Blackbird in 2009.

Based in Norfolk, the retailer currently handles over 100,000 every year from its warehouse in Wednesbury, generating annual revenues of over £35m.

Commenting on the thinking behind the acquisition, True Capital’s CEO, Matt Truman, said: “In The Cotswold Company we identified a strong business exposed to the right structural growth trends, with excellent financial metrics, driven and executed by exceptional founders and a world class management team.”

As part of the deal, Blackbird’s current management team, including Kevin Johnson and James Birtwhistle, will stay on and work with Gordon Segal, who is an investor in True Capital and founder of $1bn US furniture company Crate&Barrel, to support the company on its continued upward trajectory.

Segal said: “Having spent a long period of time with both True Capital and The Cotswold Company management team in recent weeks, I am absolutely confident Kevin and the wider team, with True Capital’s support, have the potential to build a very significant company.

“I am hopeful the experience I have gathered over the last 50 years building Crate&Barrel will be valuable to the team, and I am excited to be working with Kevin, Matt and their respective teams going forward.”

Kevin Johnson, who is the Cotswold Company’s CEO, struck a similarly hopeful tone and believes that the partnership with True Capital will help take the furniture business ‘to the next level’.

He added: “Throughout the process, which took just eight weeks, it was evident that the professionalism, experience, spirit of partnership and retail network that True Capital will bring to our business is second to none.

“We are delighted to have them on board and look forward to growing the business with them over the coming years.”

True Capital was advised by Jones Day and PwC, while the shareholders of Blackbird Retail Holdings were advised by Livingstone Partners, JDC Corporate Finance and Pinsent Masons in the deal.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →