Childrenswear retailer Adams geared up for further growth today by securing a refinancing package that values the company at £120m.
Privately-owned Adams will use the money to fund its push to open a further 40 stores in the UK over the next two years.
Lloyds TSB Development Capital is spending £15m to take an undisclosed minority stake in the business.
Adams has also agreed debt and working capital facilities of £77.5m with a syndicate of banks led by Barclays and Royal Bank of Scotland.
Bridgepoint Capital, which backed a management buy-out of Adams in 1999, has trimmed its shareholding but still retains its majority stake.
Adams’ chief executive Michael Hobbs said: “Adams has performed exceptionally well since the MBO, with both turnover and profits enjoying significant growth.
“The recapitalisation puts the business in an excellent position to meet our ambitious growth targets over the next three years.”
As well as its plans to open 40 more stores by 2004 Adams also recently struck a deal to provide childrenswear for Boots from January next year.
Adams will provide a merchandising specialist for more than 200 Boots stores, plus a support team for its range, creating 220 jobs.
The retailer, based in Nuneaton, was bought by a management team led by Hobbs from Sears Group for £87m.
It has more than 450 UK stores selling clothing for babies and toddlers with a further 56 international outlets.
EGi News 27/05/02
