Deals Review – October 2015
Thursday 15th October 2015
In partnership with the Business Desk, several of our experts will comment on significant deals every month. For October our senior partner, John Holden, explains that it is not always the biggest price that means the greatest success and this month’s key transaction is a case in point.
The sale of Quorn Foods to Filipino based Monde Nissin might catch the eye as the largest recent deal, but the most intriguing is surely Dean Hoyle’s investment in gifts, crafts, stationery and books business The Works.
With 310 stores across the UK, The Works is yet another business thriving as a value retailer – selling more than a million products every week to consumers looking for a bargain.
In this part of the market there seems huge scope for expansion for those businesses which get their business models right. Card Factory, Poundworld and B&M are all stunning northern success stories, continuing to expand across the country.
Since Endless first invested in 2008, The Works has grown by more than 76 per cent. With an impressive management team in place and a hugely supportive investor in Endless, it is already showing impressive results in terms of turnover and profits.
Now, Dean Hoyle has joined the business to add his special drive and expertise as executive chairman and as investor alongside Endless. This is his first retail role outside Card Factory, the company he founded and took nationwide, which floated on The Stock Exchange in 2014.
Dean has pointed out that The Works has a unique business model – it is not constrained by a single price structure, has a thriving multichannel platform and lots of headroom to add to the store portfolio.
This looks like a great team coming together at the right time in a business with excellent prospects – definitely one to watch.