Electra Partners announces an investment in Hotter Shoes

POSTED 20 January 2014

Electra Partners is pleased to announce that its major client Electra Private Equity PLC has taken a majority stake in Hotter Shoes ("Hotter"), the UK's largest shoe manufacturer. The transaction sees Gresham LLP sell its interests in Hotter. Stewart Houlgrave, Hotter's founder, will retain a significant stake and have a continuing involvement in the business. Hotter's management will continue to be led by CEO Peter Taylor.

Debt facilities for the transaction were provided by Lloyds Banking Group and HSBC, Hotter's management were advised by Rothschild and EY.

Established in 1959, Hotter is a leading UK designer, manufacturer and retailer of stylish and exceptionally comfortable footwear with a strong focus on product quality, design and customer service. Headquartered in Lancashire, Hotter operates from one of the most advanced shoe making facilities in the world and sells over two million pairs of shoes each year in the UK and internationally. A growing customer base has seen the company more than double its sales in the last four years.

The business operates a multi-channel route to market. In addition to its website and mail-order catalogues, Hotter trades through 57 standalone stores and 200 independent stores in the UK, whilst international sales are generated from the home shopping market in the US and through further distribution partners elsewhere.

Alex Fortescue, Chief Investment Partner of Electra Partners, said:

"We have been tracking Hotter for several years and it epitomises what we look for in a buyout investment - a really strong UK headquartered business with not only a UK growth story but also proven international potential. We look forward to working with Peter and the rest of the Hotter team to continue to drive this UK brand and manufacturing success story forwards."

Peter Taylor, CEO of Hotter said:

"We are excited about working alongside Electra Partners and the opportunities this presents. We see strong growth potential in a number of areas of our business and the support of Electra Partners will ensure that we are well positioned for the next phase of Hotter's development."

Stewart Houlgrave, founder of Hotter said:

"Hotter is well placed for further growth. Electra Partners' support will be key in enabling the business to expand into new markets and grow its customer base, while at the same time continuing to meet the needs of its existing customers."

Alex Fortescue, Sarah Williams, Shakira Adigun-Boaye and Tom Stenhouse are responsible for the investment in Hotter.

In the year to 30 September 2013, Electra Partners announced record levels of investments and realisations, investing £337 million and realising £459 million on behalf of its major client Electra Private Equity PLC.

Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.

Ends

For further information please contact:

For Alex Fortescue:
Andrew Honnor or Matthieu Roussellier, Greenbrook Communications  +44 (0)20 7952 2000
Andrew Kenny or Nicholas Board, Electra Partners  +44 (0)20 7306 3902

Note to Editors:

About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years' experience in the mid-market buyout sector. During the last 25 years it has invested in excess of £3 billion in over 150 deals. As at 30 September 2013, the firm had funds under management of over £1.5 billion including available investment capacity of more than £450 million.

Electra Partners' flexible investment strategy allows it to invest broadly across the private equity market with particular focus on: Buyouts and Co-investments, Secondaries and Debt. In addition to this, its long-term capital base means it is not constrained by expiring investment periods or exit pressure driven by fund raising cycles and is therefore able to realise investments only when returns are maximised for its investors.

The firm's major client is Electra Private Equity PLC ("Electra"), a private equity investment trust which has been listed on the London Stock Exchange since 1976. Electra's long-term investment performance has been consistently superior to private equity and other benchmarks. Over the ten years to 30 September 2013, Electra has seen diluted NAV per share growth of 279% compared to a 140% increase in the FTSE All-Share.

For further information please visit www.electrapartners.com.

Electra Partners LLP is authorised and regulated by the Financial Conduct Authority.

About Hotter
Hotter Shoes is a leading British footwear brand based in Lancashire. Founded in 1959 as a slipper manufacturer, Hotter now offers a collection of stylish women's and men's shoes with hidden Comfort Concept® features including supersoft and breathable leathers, lightweight and flexible soles and underfoot cushioning. The Company employs over 1,000 people and has over 1 million customers, both from the UK and overseas. Hotter's multi-channel sales platforms enable customers to shop online, through mail-order catalogues and through its nationwide store network. Its state-of-the-art factory produces a pair of hand finished shoes every 20 seconds - making it the UK's largest shoe manufacturer.

For further information please visit www.hottershoes.com.