Foresight Group has invested £2.75 million in the Buy-in Management Buyout of Lancashire-based Euxton Group Limited.
This is the first investment made from the Foresight Regional Investment Fund, which was launched in December
Euxton Group, a market leading e-commerce business in the gardening and landscaping sector, has grown rapidly over the last three years, having achieved annual sales growth of over 30 per cent.
The Group encompasses three companies; Hedges Direct, Best4Hedging and Impact Plants, all focused on various horticultural niches, in particular hedging.
The Group has seen a significant increase in both the number of orders and the average order value year-on-year and is well positioned in a substantial market where online product sales are growing rapidly. The Horticultural Trades Association estimates that the UK retail plant market is worth £5 billion, while the Internet Garden Products Market report predicts a 32 per cent rise in online garden product sales by the end of 2019.
Foresight’s investment will allow the Group to further drive sales and capitalise on the increasing prevalence of ecommerce. Michael McVey will join as Managing Director, working alongside the existing team of Jamie Shipley, Kathryn Gallagher and Paul Francis. Claire Alvarez, who led the transaction out of Foresight’s Manchester office, will also join the Euxton board.
The deal is the first investment to be completed from the FRIF, a dedicated regional fund focused on private equity investments into SMEs based in the North West of England, North Wales, and South Yorkshire, and managed by Foresight’s team based in its Manchester office.
Michael McVey, Managing Director, Euxton Group commented: “We are excited to be working with Foresight to help Lancashire-based Euxton Group continue its growth in the landscaping and gardening market.
“With the support of Foresight we will continue to develop the Group through improvements to our websites, adding additional product ranges and expansion into overseas markets.”