Jollyes, the Pet Industry Federation’s current retail chain of the year, has secured significant backing from investment funds managed by TDR Capital LLP to enable it to accelerate its UK store growth plans.
The investment will enable Jollyes to continue to grow its store estate at pace, as it strengthens its position as a highly competitive number two in the UK retail pet market.
The deal with TDR Capital is expected to complete in April with retailer Andy Bond (executive chairman of Pepco Group and a former CEO of Asda) due to become non-executive chairman.
On completion of the investment, TDR Capital will take a majority stake in Jollyes alongside Andy Bond and management. The investment will help to provide important new growth and support customers, colleagues and suppliers.
Jollyes chief executive officer Joe Wykes, pictured above left with Andy Bond, said: “Jollyes has been growing at pace over the past two years, with our people providing pet parents a level of expertise and service that is hard to find.
“This new investment will help us build a much bigger stage, accelerating our growth plans and giving us the resources we need to bring more value to more places.
“We look forward to partnering with TDR on the exciting next phase of our growth in the UK.
“I’d also like to thank our chairman Richard Cotter for its stewardship of this business over the last six years and formally welcome Andy Bond to our board.
“Andy’s retail credentials and ‘know-how’ in the value sector make him an ideal chair for Jollyes, customers and colleagues. I’m looking forward to his counsel and guidance as we continue to grow at pace.”
Gary Lindsay, Managing Partner at TDR Capital, said: “It is fantastic to be partnering with Joe and the Jollyes team to provide even more momentum behind the strong growth of recent years.
“In Jollyes, we identified a solid business with excellent foundations and significant potential to grow even more ambitiously in the years to come.
“Through our investment, we will deploy our significant retail expertise and support the company in rolling out its store expansion plans even more rapidly, including opening more grooming and veterinary-led community pet clinics.
“We are confident that Jollyes can further cement itself in the pet retail sector and increase the competitiveness of the market, which will benefit customers, colleagues and suppliers alike.”
Adam Maidment, Managing Partner at Kester Capital, said: “I’m incredibly proud of what we have achieved with Jollyes. We have doubled the workforce, doubled the revenue and more than doubled the profitability, building one of the largest specialty pet retailers in the country.
“It’s a great success story and exactly the kind of value creation story Kester is about.
“It has been a pleasure to work alongside Joe, Richard and the wider team over the last six years. We wish the management team and the business every success for the future.”
Lower prices for pet parents
The accelerated opening of new stores will help Jollyes continue to drive down prices for customers, as it extends its reach into new locations, increasing competition in the £6 billion UK pet market.
Jollyes has ambitious plans to open an additional 12 new stores over the next 12 months and already has agreements secured for locations in Northampton, Nuneaton, Chester and East Kilbride.
The retailer has grown it’s estate by 50 per cent in three years, opening 33 stores in 26 months.
Last week it opened its 99th new store at Belfast Connswater, Northern Ireland and will open its 100th store at Newport in Gwent on Friday (1 March) and its 101st in Rotherham, South Yorkshire on 22 March.
Jollyes’ 100th store in Newport opens on St David’s Day and underscores its commitment to South Wales having recently opened stores in Llanelli and Merthyr Tydfil.
TDR’s investment in Jollyes will also allow it to accelerate the roll out of grooming and veterinary-led community pet clinics for customers as it lowers the total cost of pet care.
Rewards for colleagues
The deal also demonstrates Jollyes’ commitment to its colleagues and to becoming one of the best employers in retail.
In the last 12 months it has already introduced a package of benefits for all its 1,200-plus colleagues nationwide, including birthday leave, a ‘pet-eternity’ day for colleagues getting a new pet in the family, a week off on full pay for all colleagues on when they get married, enhanced maternity and paternity leave and an enhanced 20 per cent discount off all Jollyes services.
The new investment will create even more career development opportunities for the Jollyes team, including new roles with broader responsibilities.
Opportunities for suppliers
TDR’s investment will also provide new opportunities for suppliers, making Jollyes the natural partner for like-minded, ambitious and entrepreneurial partners.
Over the last 12 months, Jollyes has helped small North East raw dog food supplier Durham Animal Feeds reach a nationwide audience through the roll out of raw frozen ‘shop-in-shops’.
It has also concluded a three-year contract with United Petfood, creating new jobs at production facilities at Llangadog and Pencader in South Wales and Longridge near Preston as Jollyes build its growing private label business.
As part of the new deal to supply Jollyes with a growing range of Lifestage brand food and treats, United is creating 36 new jobs at production facilities at Llangadog and Pencader in South Wales and Longridge near Preston.
TDR Capital was advised by HSBC and Barclays (M&A), PwC (financial and tax) and CMS (legal). Kester Capital was advised by Houlihan Lokey (M&A), PwC (financial and tax) and Osborne Clarke (legal). Management was advised by Jamieson (financial), Blick Rothenberg (tax) and Osborne Clarke (legal).
