Gresham backs shoe brand for the grey market

Gresham Private Equity, the UK mid market private equity specialist, today announces that it has invested £21 million in Hotter Shoes (“Hotter”). Gresham is backing the current Managing Director, Stewart Houlgrave and Peter Chappelow, Chairman to grow Hotter over the next five years.

Established in 1959, Hotter is a leading UK brand of quality, comfortable footwear for the grey market. The company predominantly sells its products through mail order catalogues. It also has four retail outlets across the UK.

Andy Marsh, Partner at Gresham, who led the deal comments, “We are delighted to be backing the management team at Hotter. It is a niche brand focused on the affluent grey market where we can see exciting growth potential. Also the business has real scalability through its direct marketing channels via mail order catalogues and internet.”

Gresham has put together an equity package that will enable Hotter to further improve its direct marketing strategy, expand to product range and target a wider audience.

Stewart Houlgrave, Managing Director of Hotter, adds “Our business is well poised for further growth in our market. The support of Gresham Private Equity will enable us to invest in our marketing capabilities and expand our distribution channels. This will provide the resource and capability to increase our customer base as well as continuing to meet our current customer’s needs.”

Iain Wolstenholme, Andy Marsh and Andy Tupholme worked on the deal at Gresham with Andy Marsh and Ken Lawrence joining the board.

Mark Senior at Ernst and Young was lead advisor to Hotter and Newco on the transaction.

Gresham has catalogue deal experience following its investment in the UK’s leading catalogue supplier of pneumatic and hydraulic products, Flowtech. Consumer product deal experience includes the recently completed West Cornwall Pasty Company.