Silverfleet Capital acquires footwear retailer Office
European private equity firm Silverfleet Capital has confirmed that it has acquired Office, the UK footwear business, for an undisclosed amount from West Coast Capital (WCC).
The acquisition is the firm’s second retail deal in as many months, as it also acquired German online retailer the Schneider Group in October 2010.
Office first opened in 1981 and has since grown to 75 stand-alone stores in the UK and Republic of Ireland and 46 concessions in House of Fraser, Topshop (including New York), Harvey Nichols and Selfridges. It also has a fast-growing internet business.
The business retails a selection of footwear brands including Ugg, Converse, Vans and Hunter as well as its own-branded shoes, primarily under brands such as ‘Office’, ‘Ffor’ and ‘Poste’. Total sales in 2009 were £146 million.
“Office is a great business with a management team that really understands what its customer wants,” said Gareth Whiley, partner at Silverfleet Capital. “The young fashion sector of the footwear market is growing fast and there is still room for a roll-out of stores within the UK and potentially overseas.”
Chairman of WCC, Sir Tom Hunter, bought the Office chain in 2003 when it had 23 stores. He said: “Having held Office for seven years and grown it to become the dominant UK fashion footwear business, it was appropriate to sell to Silverfleet Capital to oversee the next phase of growth. Brian (McCluskey) and the management team have done an outstanding job and we wish them and Silverfleet Capital well going forward.”
Mr McCluskey will continue as CEO of the business under Silverfleet Capital ownership. He commented: “The past seven years have been a rewarding challenge; the next seven should yield continuing opportunity as we look to further UK and potentially international expansion.
“During the sale process Silverfleet Capital demonstrated their knowledge of, and commitment to, growing this business in a dynamic manner and we in the management team look forward to building on our existing success with them. Thanks to the commitment of our brand partners and our people we look forward to continued growth.”
This acquisition is Silverfleet Capital’s third from its current EUR670 million fund following the EUR212 million acquisition in September 2009 of Kalle, a producer of artificial sausage casings and the Schneider Group in October 2010.
