The Le Col brand has grown exponentially at the premium end of the consumer market and there was a palpable need for the operational side of the business to keep pace.
Le Col engaged our Strategic Corporate Finance team (SCF) to work with them to research their international growth opportunities and determine the right path to achieving global brand recognition within the sporting sector.
This resulted in a clear strategy and financial model which was then used as the backbone for a successful £1m crowdfunding campaign. We supported the campaign by introducing investors and assisting as lead advisers, negotiating between different investor groups.
Upon completion, we met monthly, discussing performance and proactively designing how to capitalise on the incoming opportunities. This culminated in a shareholders meeting where the management team and Chand Chudasama, Director of Strategic Corporate Finance for Price Bailey updated shareholders on progress and facilitated a discussion on growth options. It was agreed that the business would spend a period of time investigating the new projects that would allow the business to capitalise on growth and their funding needs.
We worked with Le Col to formulate an enhanced strategy for growth that took advantage of new opportunities and identified an appropriate valuation range that would work for both current and future shareholders. We led a competitive investment process and received four very different offers. Puma Private Equity was chosen for their understanding of the product, the market and what drives value in the sector. They built a strong relationship with the Le Col management team and offered an initial £2.35 million of investment to fuel further growth, with the ability to invest further funds as the business develops.
We were involved throughout the entire investment process and played a key role in negotiating terms, providing additional support in financial modelling, designing management information, and supporting the due diligence process. Delivering this required input from key subject matter experts across Price Bailey – including our Business team, Tax team and Legal Services, all joined up, behind a single plan and deal process.
The combination of different disciplines, united with a pragmatic and commercial investor in Puma and an outstanding management team at Le Col resulted in a fantastic deal that represents a key milestone in a two and half year journey.
Yanto Barker, Le Col Founder, says:
“We are delighted to welcome Puma Private Equity on board; their support will be key in facilitating the next phase of Le Col’s growth. The gains we’ve made in 2018 have been exceptional and this investment will be instrumental in taking our market leading product to a global cycling audience.”
Tommy O’Sullivan, Managing Director at Puma Private Equity, who will join the Board of Le Col, adds:
“Guided by Yanto’s performance insight, design expertise and drive for perfection, Le Col is becoming the go-to brand for cyclists looking for the best kit. Our investment will support the team to leverage the explosive growth it has achieved over the last 12 months, ensuring Le Col continues on its exciting journey.”
Chand Chudasama, Director at Price Bailey in the Strategic Corporate Finance team, says:
“Le Col is a really special business for us; we have worked with the management team for two and a half years now. They are a really strong team focused on performance, their customers and an exceptional product range. Though there was strong interest in Le Col from a variety of investors, once Puma demonstrated their understanding of what drives value in this sector and then matched this with a really pragmatic and commercial approach to doing a deal it was clear that they would be the perfect investment partner for the future. We’re delighted to see Le Col now have the opportunity to go to the next level.”