Hozelock

Activity
Design and manufacture of domestic garden equipment
Acquired
Jul 1990
Realised
Nov 1993
Sector
Consumer

Business
Hozelock designed, manufactured and marketed on a global basis a range of garden equipment for domestic use. This included garden watering equipment, garden sprayers, pond equipment, garden lighting and indoor and outdoor clothes drying equipment. Working with the incumbent management, Cinven acquired the company in July 1990 from Ropner PLC, a listed industrial holding company.

Strategy
In the period prior to acquisition, the management team had guided the business through excellent growth, introducing new products and reaching a position of dominance in the UK market. Hozelock had also begun to develop a presence in some overseas markets with some success. With the gardening market looking strong, it proposed to continue to grow its business both in the UK and overseas with Cinven’s support.

Outcome
By 1993 strong sales growth and a near doubling of profits in three years had been achieved primarily through organic growth. To support further expansion both in the UK and continental Europe both through further organic growth and acquisitions, a stock market listing was sought. This was successfully accomplished in November of 1993 although Cinven maintained an interest in the business for a further period following flotation.

Multiple returned on investment: 5.6x