Elaghmore Partners acquires Kesslers International Limited through Fund
Elaghmore Partners LLP, the UK-focused private equity firm, has acquired Kesslers International (“Kesslers”), one of Europe’s leading designers and manufacturers of retail displays and merchandising for world famous brands and retailers. Elaghmore has bought the business from Enact, the dedicated SME Fund managed by Endless LLP. Enact invested in Kesslers in February 2016, providing new funding to support the turnaround of the business. Founded in 1893, Kesslers creates point-of-purchase displays and merchandising solutions for major clients including world famous brands and leading UK high street retailers. Located in Stratford, London, the business operates from a state-of-the-art design, engineering and manufacturing facility with a highly experienced team of over 200 employees.
This is the second acquisition made by Elaghmore from its initial private equity fund, Elaghmore I (Fund 1) which closed at the end of 2016, raising £60 million. The fund was oversubscribed and the investors are a mixture of US and European institutions. The investment strategy of Fund 1 is focused on UK-headquartered industrial businesses that present a significant opportunity for growth and value creation. Led by David Manning, Andy Ducker, David Morley and Greg Koral, Elaghmore Partners has a strong track record over the past decade for investing in and successfully growing businesses, including Chaucer Foods, largely through operational transformation.
Fund 1 was launched to capitalise on the partners’ successful track record and their strong operational expertise in the UK mid-market. The first acquisition was SB Components, a leading supplier of bespoke components and adaptations for commercial vehicles. David Manning, Founding Partner at Elaghmore, said: “Kesslers is an exciting business with a long history and strong client list. We are excited to be investing in helping the management team deliver the next phase of its growth plans which include expansion in Europe and breaking into new market sectors. We look forward to working with the management to achieve their ambitious objectives.”
Commenting on the transaction, Chris Cormack, Investment Director at Enact, said: “Kesslers is a well-established business with a strong market position and brand. We are pleased to have been part of the company’s journey and wish the management team, along with their new owners, Elaghmore, all the best for the future.”