Jane Norman
Transaction Background
In January 2003 Graphite Capital led the £60 million management buy-out of Jane Norman from the Freed family, who founded the business. Jane Norman is a fast-growing chain of women’s fashion retail stores and concessions. Its clothing and accessories are targeted at the 15-25 age group.
Deal Attractions
We backed an exceptionally experienced chief executive with strong expertise across all key areas of this fast-growing retail business. The business generated high sales per square foot from its relatively small base of existing stores, making it highly suitable for nationwide retail roll-out. We were also attracted to Jane Norman’s efficient supply chain which minimised lead times and allowed mid-season range adjustments where necessary.
Achievements
- continued store roll-out proved hugely successful
- the number of outlets doubled under our ownership
- the concept was successfully introduced to the Republic of Ireland
- the company opened stand-alone accessories stores
- the business expanded its supplier base and increased sourcing from eastern Europe, yet retained control on lead times
- turnover and profit grew significantly
- Jane Norman had one of the highest operating margins in the fashion retail sector
Exit
- Graphite and the management team put the company up for sale in spring 2005, as sector ratings approached a cyclical high and the business performed strongly
- Jane Norman was sold in July 2005 in a £117 million sale to Baugur, the Icelandic retail investor
- the proceeds represented a multiple of 2.9 times our initial cost of investment and an internal rate of return of over 50 per cent
