“Counting Down To Success” - Watchfinder

“Counting Down To Success” - Watchfinder

The client

 

  • Maidstone-based online retailer Watchfinder specialises in selling high-end luxury watch brands such as Rolex, Cartier and Omega. Watchfinder has recently opened their first London boutique and a shop in Bluewater.
  • Since 2002 when the company was founded, it has sold more than £120 million worth of luxury watches.

 

The opportunity

 

  • Watchfinder has the largest collection of used watches in the UK and is aiming for £70 million sales by 2016.
  • Having recently opened its first London boutique the client wanted to secure investment to improve stocks, produce a marketing campaign and to improve its service centre.
  • Provide some liquidity for existing shareholders.
  • The investment also had a high degree of urgency driven in part by the desire to open the new Boutique at Bluewater Shopping Centre before Christmas 2014.

 

Solution

 

  • To secure investment from Private Equity firms Piton Capital and Beringea.
  • The investment took the form of a split share acquisition and share issue equal to 30% of the issued share capital of Watchfinder.co.uk Limited.
  • The deal valued the company at US$33.3 million.
  • The structure was complicated by the fact that each of the two private equity funds made their investments in different ways, one by having new shares issued to it and the other by acquiring shares from existing shareholders. The documentation included a thorough due diligence by the investors and the negotiation of a full suite of warranties, disclosures and complex investment documentation dealing with the management of the business going forward.

 

Benefit

 

  • Piton Capital and Beringea both have combined expertise in ecommerce, retail and international markets.
  • The investment is intended to boost sales and double the client’s stock holding.
  • The team at Brachers understood the commercial rationale for the investment.

 

Team

 

  • James Bullock, Corporate
  • Matt Simmonds, Corporate

 

“Brachers’ Corporate team really demonstrated their expertise in private equity work. They were available 24/7, understood what was important to us as a management team, delivered excellent legal advice and always understood the commercial rationale for the investment. They are a great team and we’re happy they were on our side in the negotiations.”
Stuart Hennell, Managing Director of Watchfinder

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