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Bidders for HobbyCraft Multiply as Halfords Withdraws Offer
Listed under: News
Published: Monday, March 15, 2010
The competition to snap up one of the country's leading art and craft retailers looks set to be one of the fiercest battles in the history of the sector, seeing more than 20 top firms fight it out for a slice of the action.
HobbyCraft, which is currently on the market for a whopping £70 million and believed to have generated a pre-tax profit of £5.4 million in the 12 months to February 2009 – up 67% on 2008 – was put up for sale late last year and has already attracted interest from a number of prestigious buyers, including some of the most highly regarded private equity firms in the country.
Bids for the retailer are reported to have now exceeded £100 million, seeing some of the early favourites tipped to win ownership of the enterprise withdraw their applications – including car and bike accessories specialist, Halfords.
The retailer, which hopes to quadruple its store numbers from 48 to 180 over the next few years, has already attracted bids from a range of private equity groups, including the firm Blackstone, which already boasts a share in one of the world's largest art and craft retailers, Michaels.
Other interested parties include the mid-market private equity groups Bridgepoint Development Capital, TA Associates and Exponent.
Speaking to the Financial Times, Nick Bubb, retail analyst at investment specialist, Arden Capital, says, “HobbyCraft is in an attractive space in the out-of-town retail park sector, with no direct competition. But there are clearly people pushing at the edges, notably Dunelm, the homewares retailer, which has launched its own arts and crafts section.”
The past year has also seen a number of larger retail outlets move into the craft market, with supermarkets such as Tesco, Morrisons and Asda all launching their own ranges of craft-related supplies.
HobbyCraft, which is currently on the market for a whopping £70 million and believed to have generated a pre-tax profit of £5.4 million in the 12 months to February 2009 – up 67% on 2008 – was put up for sale late last year and has already attracted interest from a number of prestigious buyers, including some of the most highly regarded private equity firms in the country.
Bids for the retailer are reported to have now exceeded £100 million, seeing some of the early favourites tipped to win ownership of the enterprise withdraw their applications – including car and bike accessories specialist, Halfords.
The retailer, which hopes to quadruple its store numbers from 48 to 180 over the next few years, has already attracted bids from a range of private equity groups, including the firm Blackstone, which already boasts a share in one of the world's largest art and craft retailers, Michaels.
Other interested parties include the mid-market private equity groups Bridgepoint Development Capital, TA Associates and Exponent.
Speaking to the Financial Times, Nick Bubb, retail analyst at investment specialist, Arden Capital, says, “HobbyCraft is in an attractive space in the out-of-town retail park sector, with no direct competition. But there are clearly people pushing at the edges, notably Dunelm, the homewares retailer, which has launched its own arts and crafts section.”
The past year has also seen a number of larger retail outlets move into the craft market, with supermarkets such as Tesco, Morrisons and Asda all launching their own ranges of craft-related supplies.
