Searchlight Capital Partners buys control stake in Hunter

Wellington boot maker Hunter has a new controlling shareholder after an undisclosed investment by private equity group Searchlight Capital Partners. Existing shareholders will retain a stake. Despite financial terms weren’t announced, Hunter Boot Limited, the UK manufacturer of the iconic Wellington boot, has announced a new controlling shareholder as it seeks to expand into overseas markets. Searchlight Capital Partners, a US private equity outfit, has agreed to take a majority stake in Hunter early next year.

The deal is the first for Searchlight, which was set up in 2010 and is believed to be oversubscribed for its initial $750 million (£482m) fund. The company was co-founded by three executives from KKR, CVC and Apollo.

The footwear and accessories label delivered sales of £56m last year and is on track to make £80m in 2011.

Hunter Boot, whose Scottish roots go back to 1856, will use the funds to push its international expansion drive after a difficult few years that saw it close its factory in Dumfries in 2008. The firm fell into administration in 2006 as manufacturing costs outstripped the pace of sales growth. It was rescued by a consortium that included brand management group Pentland and private investors Julian Taylor, Peter Mullen and Tory peer Lord Marland. Prior to Searchlight’s equity injection, Pentland owned roughly half of Hunter, with the other half split among the trio of private investors. These existing shareholders are said to retain a “significant investment” following the deal with Searchlight.

Peter Mullen, chairman of Hunter Boot, said: “Hunter is enjoying great success and the brand continues to go from strength to strength. This transaction and future support from Searchlight will help us to capitalise on the growing demand for Hunter-branded products as we look to increase our presence in existing markets and expand in new regions around the world.”

Oliver Haarmann, partner and co-founder of Searchlight Capital Partners, said the plan was to drive further growth from product line extensions and geographic expansion. “Hunter is exactly the kind of high quality investment opportunity that we are looking for. Hunter is an iconic brand with excellent growth potential and we look forward to working with the company’s management to drive further growth from product line extensions and geographic expansion.”