Initial investment: 26/02/2013
Sector: Consumer & Leisure
Fund: Buyout Fund II
- Anthony Preston, the founder of Pets at Home, was appointed as non-executive chairman at completion.
- Strengthened the board with the appointments of a chief operating officer and a retail director.
- Acquired a smaller competitor which broadened the product portfolio and increased market share.
- Worked with the management team to reorganise operational procedures, significantly increasing business efficiencies and reducing the cost base.
- Completed the successful sale of Playnation to Austrian-based Novomatic in a transaction that delivered a 2.5x return.
Playnation was one of the market leaders in the sector and we believed that it was well-positioned to take advantage of forecast economic growth. Our strategy for the business was both organic and acquisitive; we planned to win new customers and introduce new products to enable further growth. We also believed that there were future opportunities for selective bolt-on acquisitions.
Since building the business with Palatine in 2013, we have taken a firm hold of the sector and formed some strong partnerships across the UK with our clients. Having a private equity backer has given us the contacts and resources to develop a strong management team, and the potential for future growth is enormous.