Risk Capital Partners (RCP), the private equity firm chaired by entrepreneur Luke Johnson, has bought a majority stake in Zoggs, the the global swimming products brand.
RCP will support the existing management team led by Mark Hammersley, who has run the business for the past 13 years.
This acquisition marks the first investment by Risk Capital Partners in the sporting goods market, but a return to retail for the company.
Zoggs, which was founded in 1992 in Sydney, has built on its success as an innovator in the swim goggles market to develop a full range of swimwear, swim equipment and learn to swim/water confidence products. In addition to subsidiaries in the UK, Australia and New Zealand, Zoggs is now sold in another 45 countries.
Zoggs were advised by McQueen corporate finance and Squire Patton Boggs on the deal. Alan Jacobs remains as Chairman of the newly formed Zoggs Group.
Mark Hammersley, CEO of Zoggs Group, added “The management team at Zoggs was very impressed by the branded investments made to date by RCP and are really looking forward to working with Luke Johnson and the team at RCP to continue the fantastic growth the Zoggs brand has experienced in recent years.”
Luke Johnson, Chairman of Risk Capital Partners, commented “Swimming is a life skill and a great way to exercise and unwind. I am a regular swimmer and a big fan of Zoggs’ products, as is my whole family. Zoggs offers products for beginners through to enthusiasts and the whole family.
We see sustained long term growth in the global swimming market, supported by favourable demographics for this low impact exercise and shifting cultural attitudes to swimming across the Far East and Middle East.”
Risk Capital Partners was established in 2001 by Luke Johnson and Ben Redmond, and focuses on investing in medium sized companies (£10m £30m) across a range of industries. Typically it invests £3m to £15m of equity in any single company.
In addition to a new stake in Zoggs, Risk Capital Partners currently owns Bread Holdings (owner of Gails bakeries), restaurant group Red Hot World Buffet and also has had success with previous investments in the restaurant space with Giraffe, Signature Restaurants and Strada.
RCP also invests in the travel industry with current investments in Neilson the active holiday tour operator and Cruise.co the online travel agent for cruise holidays. Previous investments include Integrated Dental Holdings, Britain’s largest chain of dentists, recruitment businesses such as Interquest and support services businesses such as APT, a car park services business.
Transactions have ranged from development capital deals involving minority stakes to management buy-outs and buy-ins. Risk Capital Partners looks to partner with strong management, ‘investing in companies with a compelling economic proposition and a sound business model.’
