PE consortium acquires Australia's Universal Store

Financial terms of the transaction have not been disclosed, though the Australian Financial Review reported that the deal was worth A$100 million ($72 million). Universal Store’s management team contributed to the buyout as well, according to KPMG, which advised on the deal.

Founded in 1999 in Brisbane, Universal Store now has 53 outlets in six states as well as an online store. Annual turnover is more than A$100 million. The company targets fashion-conscious consumers in the 15-34-year-old age range, selling exclusive products from private-label brands and third-party manufacturers. It encourages repeat business by creating scarcity through short product runs, and claims to differentiate itself from competitors with high-quality customer service.

“Our strategy remains simple but effective,” said Universal Store CEO Alice Barbery in a statement. “We are focused on delighting our customers, and further expanding our store network and omni-channel offering to meet their needs. This strategy has delivered us outstanding results over recent years, so our focus is on evolving that strategy, rather than changing it.”

BB Retail is an investment vehicle founded by Australian retail industry veteran Brett Blundy, with global assets under management of more than $1.2 billion. In addition to consumer and retail, the firm also invests in the technology, agriculture, property, and funds management sectors. Blundy and the firm have participated in a number of transactions in Australia’s retail space, including the buyout of health store Mr. Vitamins in 2016 alongside Catalyst and Ironbridge Capital.

Five V is headed by Adrian Mackenzie, the former Australasia lead for CVC Capital Partners, and focuses on middle-market opportunities across Australasia. The firm closed its second fund last year at A$65 million, bringing its total assets under management to more than A$110 million. Its investments include the contact center business of Salmat, financial services provider RateSetter, and online design platform Canva.

Catalyst is managed by Trent Peterson, a former executive from Catalyst Investment Managers who switched to deal-by-deal fundraising after the co-founders stepped back. The firm has invested in several middle-market Australian companies, such as Mr. Vitamins and bus route operator SkyBus.

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• Topics
• Australasia
• Consumer
• Buyouts
• Australia
• Catalyst Investment Managers
• Five V Capital