- Danielle Wightman-Stone |
Swiss private equity firm Telemos Capital has confirmed that it has made its first UK investment with a controlling stake purchase in sex toy and lingerie retailer Lovehoney.
Established in Bath in 2002 by Richard Longhurst and Neal Slateford, Lovehoney has grown to bring in 100 million pounds in revenues, ending March 31, 2018, with recorded annual sales growth of around 30 percent in the last three years.
Focusing on sexual happiness products, 60 percent of Lovehoney sales come from the UK, with the remainder from Europe, US and Australia, all of which have achieved “significant growth” in recent years states the brand.
The majority stake percentage in the company that has been acquired by Telemos Capital and the financial details has not been revealed.
According to a statement from the firm, the funds will be used to accelerate plans for international expansion “tapping into fragmented and underdeveloped markets and building on its strong consumer engagement”.
Lovehoney will also invest in new technology and marketing, allowing the business to raise its profile in new geographies, as well as evolve its customer service, online content, community and innovative new products.
Neal Slateford, co-founder of Lovehoney, said in a press release: “We're excited to be partnering with Telemos as we continue our strategy to grow Lovehoney into the world's leading sexual happiness retailer. This investment shows the strength of online retail and will allow us to break into new markets globally.”
Philippe Jacobs, executive chairman of Telemos, added: “We are delighted to have made this investment which demonstrates our differentiated thinking and approach. Richard and Neal have created a great company. We are excited to partner with founders with long-term growth aspirations and a desire for a flexible and nimble investor.”
Lovehoney co-founders Richard Longhurst and Neal Slateford will continue to lead day-to-day operations with Telemos’ executive chairman Philippe Jacobs and chief investment officer Jacob Polny joining the Lovehoney board.