Montagu Private Equity announces £244 million acquisition of Maplin Electronics


London | 03 September 2004

Montagu Private Equity has completed the acquisition of Maplin Electronics, the UK's fastest growing retailer of electronic and computer components, equipment and accessories. Montagu paid £244 million to acquire the business from its majority shareholder, Graphite Capital, and the management team. 

Maplin's eight directors, led by chairman Dr Keith Pacey and managing director Graham Caldwell, will reinvest a significant proportion of their proceeds from the transaction into the new structure, reflecting their strong belief in the company's future growth. 

Maplin operates a fast-growing chain of high-street and out-of-town retail stores, a mail-order catalogue and expanding internet business. Its product range comprises an extensive number of electronic components and accessories, in the broad categories of sound and vision, computer products and hobbies and electronics. It currently has 89 stores across the UK and has plans to open another nine in 2004.

Montagu Private Equity director James Roddis, said: "Maplin is a very attractive business for Montagu, with stable earnings and excellent growth prospects. We are backing an exceptional management team who have consistently delivered long term growth to investors. We look forward to supporting their ambitious growth plans for the business. Over the next three years, our objective is to open over 59 new Maplin stores around the UK.

"This is Montagu's fifth transaction in the last two months. We have made over £380 million of investments in Germany, France and the UK. Our investment strategy is consistent; to back strong incumbent management teams who operate first class mid-market European businesses with stable earnings and good growth prospects."

Keith Pacey, Maplin executive chairman said: "Over the past three years Graphite Capital has supported us as we developed new retail formats and store locations, built a management team with strength and depth across all operational areas and grown sales and profits dramatically. This is just the start. We are looking forward to working with Montagu Private Equity to realise the full potential of expansion opportunities for Maplin Electronics at home and abroad."