A Greater Manchester online eyewear and watches retailer has been acquired in a deal which could be worth up to £15m.
Bury-headquartered Shade Station, which sells designer sunglasses and and prescription glasses, has been snapped up by Internet Fusion Group (IFG), an online business which sells outdoor and fashionwear.
The deal was funded through a loan of £13.7m to IFG from Hawkwing which was also used to acquire Northcore, a surf and adventure sports gear brand.
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Shade Station generated a revenue of £14.5m and an EBITDA of £2.3m in the year to April 30, 2021.
IFG has paid an initial consideration of £10m on a debt and cash free basis. There is a conditional earnout of up to £5m depending on the future trading performance of Shade Station.
John Browett, executive chairman of Internet Fusion Group, said: "These acquisitions represent another significant step in the execution of our buy-and-build strategy.
"We have a compelling track record of acquiring profitable specialty retailers and transforming their performance and growth prospects through our Reactor platform, and we look forward to accelerating the future performance of Northcore and Shade Station.
"Both are fantastic businesses which offer authentic online retail experiences for people browsing for high-quality products from like-minded brands. Separately, the investments in our business by Hawkwing and Marshall Wace demonstrate strong investor confidence in our model, and I am excited by the momentum we continue to build in the market."
Keith Sadler, senior independent non-executive director of Hawkwing, added: "We are delighted to support IFG in its buy-and-build strategy and on its acquisition of Northcore and Shade Station, two businesses that expand and enhance IFG's suite of well-respected speciality e-commerce businesses.
"As IFG continues to expand, the investment from Marshall Wace is another strong endorsement of its business quality, its management team and their growth strategy.
"Our proposed acquisition of IFG continues to progress and we look forward to updating the market in due course."
