Privately-owned specialist retail investment boutique Modella Capital has announced its acquisition of Hobbycraft, the largest arts and crafts retailer in the UK. Bridgepoint, the current majority investor, has exited its investment. Financial details of the transaction are not disclosed.
Founded in Bournemouth in 1995 and acquired by Bridgepoint in 2010, Hobbycraft has grown to a nationwide business with over 2,000 colleagues, 124 stores across the UK and an online club with over 7 million members. It has consistently grown its profits since the Covid pandemic and is a proud and regular member of the Best Companies Awards, winning #2 Best Big Company to Work For in 2023, and awarded three-star 'World Class' status earlier this year for the fifth time.
Modella Capital is a private investment boutique established to offer growth solutions for retail organisations. With the company's extensive retail knowledge and experience, it is uniquely placed to support Hobbycraft with its exciting growth strategy.
Dominic Jordan, CEO at Hobbycraft, said:
"We are delighted that Modella Capital is the new owner of this great business. Their deep understanding of the retail sector, shared vision and cultural values, combined with financial and operational capital, make them an ideal partner. I would like to thank Bridgepoint for their support and collaboration over the past 14 years. Hobbycraft has evolved into a leading name in the arts and crafts sector, I am confident that, together with Modella Capital, we have a very bright future ahead of us."
Joseph Price, Managing Director at Modella Capital, said:
"Hobbycraft is a business with fantastic potential, boasting a highly experienced management team and truly passionate store colleagues. We look forward to accelerating their growth strategy through investment in the physical footprint of the Group, and by enhancing the returns generated from their existing sales channels."
Aaron Collins, Director at Bridgepoint, said:
"Bridgepoint has been proud to support Hobbycraft over the past 14 years, during which it continuously invested for growth, significantly expanding its footprint from just 47 stores to 124 today. This growth is a testament to the passion and dedication of the entire Hobbycraft team. As the business moves forward under new ownership, we are confident that it will build on these foundations and deliver future success."
The acquisition by Modella Capital was supported by asset-based lender, Secure Trust Bank Commercial Finance.
Tony Young, Regional Sales Director at Secure Trust Bank Commercial Finance, said:
"By working alongside Modella Capital to complete this transaction, we've been able to support a prominent high-street brand in continuing to grow across the UK. This deal also represents our ability to work alongside and support private equity in strategic transactions to unlock additional capital. I look forward to working alongside Joseph, Dominic and Hobbycraft's management team to continue delivering on its impressive growth trajectory."
Modella Capital was advised by Pinsent Masons, Moore Kingston Smith and RJP.
Hobbycraft was advised by Raymond James, Cleary Gottlieb, KPMG, Strategy& and PWC.
Secure Trust Bank Commercial Finance was advised by DLA Piper.