UK sex toy and lingerie retailer Lovehoney has sold a majority stake to Swiss Private Equity firm, Telemos Capital.
Founded in Bath 16 years ago by Richard Longhurst and Neal Slateford, market-leading e-commerce retailer Lovehoney focuses on women and couples and bring in revenues of £100m from a range of international operations.
Selling a mix of own label and third-party products, Lovehoney’s profits for 2016/17 were £9m and in 2016 they received the Queen’s Award for Enterprise in recognition of its achievements.
The purchase is Telemos’ first investment in the UK and financial details regarding the stake and percentage have not been revealed. Following the investment, Lovehoney co-founders Richard Longhurst and Neal Slateford will continue to lead day-to-day operations with Telemos’ Executive Chairman Philippe Jacobs and Chief Investment Officer Jacob Polny joining the Lovehoney board.
In a statement regarding the investment, Lovehoney explained that the funds will be used to grow international operations, “tapping into fragmented and underdeveloped markets and building on strong consumer engagement”. The investment will also be used to develop technology used by the organisation and grow their marketing operations which will support the geographical expansion.
Speaking of the investment, Richard Longhurst, co-founder of Lovehoney, said: “This is the culmination of 16 years of hard work by our brilliant teams in Bath and our offices worldwide. It has been a phenomenal journey for Neal and I and we’re beyond excited at our future plans for Lovehoney.”
Executive Chairman of Telemos, Philippe Jacobs, said: “We are delighted to have made this investment which demonstrates our differentiated thinking and approach. Richard and Neal have created a great company. We are excited to partner with founders with long-term growth aspirations and a desire for a flexible and nimble investor.”
Praesumo would like to congratulate all involved at Love Honey and Telemos Capital in making the deal a success.