Monday, January 18, 2016
Three Hills Capital Partners invests in Tomorrow London Ltd.Investment Activity
Three Hills Capital Partners (“THCP”) is pleased to announce the closing of a £15m investment in Tomorrow London Ltd., one of the most prominent sales platforms for both established and emerging brands in the fashion industry.
The investment will be made via a preferred equity instrument, in order to enable the management, who currently own 50%, to buy out the remaining shareholders.
Tomorrow London Ltd. opened its first showroom in 2008, and has since developed into one of the world’s leading sales platforms. During recent years the company has consistently grown financially, with EBITDA reaching in excess of £3 million in 2015 with a target to more than double in the next 5 years. This rapid success story has stemmed from an integrated and innovative business model that includes: a marketing and promotion service, a logistics and distribution centre, and a set of permanent and periodically leased showrooms that display multiple brands from across the market spectrum.
Currently representing over 50 brands globally and with three permanent showrooms across London, Paris and Milan, Tomorrow London Ltd has become a key destination for buyers searching for the best brands the fashion market has to offer.
THCP’s investment will support the company in achieving a number of near-term growth prospects including plans to open additional showrooms, form strategic partnerships and pursue strategic acquisitions. The first project will be the opening of the New York office.
Stefano Martinetto, CEO and controlling shareholder of Tomorrow London Ltd. commented: “I am delighted to have the THCP team on board for the next exciting step at Tomorrow. THCP and I have been talking about the changing land scape in the unconsolidated Wholesale Distributions and Sales business in fashion and how to tackle the massive opportunity we see in scaling up and adding services to the industry. I am equally happy about what we achieved in such a short period of time thanks to the constant and inspiring exchange of thoughts with my partners Giancarlo Simiri, Matt Clark, Jens Grede, Erik Torstenson along the others. Indeed I am glad they decided to retain a minority stake in the business.”
Mauro Moretti, founder and Managing Partner of Three Hills Capital Partners, commented: “We are excited to back Tomorrow’s management team in the next phase of growth of their business. We believe the company has been able to gain a unique competitive positioning in the fashion industry thanks to its ability to source successful brands, its geographical footprint and the innovative way it covers the full value chain. Once again, THCP has delivered a tailor-made capital structure solution in an off-market deal.”
The legal advisers on the transaction were Dickson Minto on behalf of Three Hills Capital Partners, and Bird & Bird on behalf of Tomorrow London Ltd. Deloitte acted as advisers for accounting and tax.