A Lancashire online gardening and landscaping business has been sold by private equity firm Foresight Group to a former chief executive of listed white goods and technology retailer AO World.
Steve Caunce first joined Hedges Direct Group, which is based in Euxton, in 2019 and has now acquired the business after a competitive sales process.
The deal is the second exit from Foresight Regional Investment LP following the sale of Clubhouse Golf in March 2020.
To date, £44.1m has been returned to the fund, representing 84% of drawn capital, after just two exits and with 15 portfolio companies remaining.
Following Foresight’s original investment in August 2016 staff numbers have increased by 60% while its revenue surged 93 per cent in four years.
Caunce, who is the company's chairman, said: "I am very excited to have acquired Hedges.
"The team has built a very solid customer focused platform ready for growth. The potential for the business as a result of this is huge. I very much look forward to supporting Jamie and the wider Hedges team to fulfil this potential."
Jamie Shipley, managing director of Hedges Direct Group, added: "It’s been a pleasure working with Claire and the team at Foresight over the past four years.
"Together we have strengthened our management team and built solid foundations for growth.
"Since joining us in 2019 Steve has been a great mentor to me, and a very welcome addition to the Hedges family.
"His decision to acquire Hedges Direct from Foresight represents another significant milestone and the start of a new chapter for our business.
"I and the whole team here at Hedges Direct is incredibly excited and privileged to be involved in the next phase of development in our business, and I know we will see it continue to go from strength to strength."
Claire Alvarez, director at Foresight, said: "It’s been fabulous to work with Jamie and the wider team at Hedges, supporting their rapid growth, which has really escalated recently following the investments made into the business.
"The growth in the eCommerce sector over the past three years has been dramatic and we are delighted that we have been able to support Hedges in its growth journey and in creating new jobs and opportunities in Lancashire.
"We wish Steve, Jamie and the team every success for the future."
Foresight and the other shareholders were advised by:
Corporate finance: KPMG (Christian Mayo, Rick Stark, James Gaffney, Andrew Kopciowski and Klara
Skopac), Alexander & Co (John McCaffrey)
Legal: Shoosmiths (Tim Jackson-Smith and Kendra McCullough), BLM Law (Danny Varney)
Financial diligence: Deloitte (Jodi Birkett, Anika Keys and Alex Ault)
Commercial diligence: Javelin (Matt Jeffers, Humphrey Rose and Henry Knight)
