Geldards Advise on Financing of Mountain Warehouse

Geldards have advised The UK’s leading outdoor clothing and equipment retailer, Mountain Warehouse, in a transaction valuing the business at over £50 million.

Founded by entrepreneur Mark Neale in 1997 Mountain Warehouse has grown from a single store in Swindon. The company now has 110 stores. This rapid growth, which has created in excess of 800 UK jobs, has allowed sales to soar by 50% to £47.5 million and profits after tax to increase by 100% to £3.7 million in the financial year to February 10, representing a fourfold increase in three years.

Mountain Warehouse has continued the fast pace of the last two years, by opening 18 new stores so far in 2010 and has plans for at least a further 18 over the second half of the year.

LDC, the mid-market private equity arm of Lloyds Banking Group acquired a significant minority holding in Mountain Warehouse, buying out existing investor, KCAJ.

Geldards partners David Tilly, Debra Martin, Ellis Gardner-Browne and Solicitor Jenny Allen worked to conclude the investment.

Geldards Partner; David Tilly said: “This transaction is a real testament to the success of the business and demonstrates that funding is still available in the market for businesses with a proven track record. Advising on this investment has provided a lot of satisfaction for all involved.”