Kester Capital, a UK lower mid-market private equity firm, today announced an agreement to sell its portfolio business, Jollyes Retail Group Limited (“Jollyes”), to TDR Capital. Jollyes is the second largest pet retailer in the UK.
Under the ownership of Kester Capital since 2018, Jollyes has experienced significant growth, now ranking among the fastest-growing physical retailers in the UK. The expansion includes an increase in the number of stores from 64 to 100 and doubling the employee count to over 1,200. Additionally, Jollyes has seen consistent, market-leading, double-digit like-for-like growth, with both revenue and profit more than doubling since the investment by Kester Capital.
Adam Maidment, Managing Partner at Kester Capital, said: “I’m incredibly proud of what we have achieved with Jollyes. We have doubled the workforce, doubled the revenue and more than doubled the profitability, building one of the largest speciality pet retailers in the country. It’s a great success story and exactly the kind of value creation story Kester is about.
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“It has been a pleasure to work alongside Joe, Richard and the wider team over the last six years. We wish the management team and the business every success for the future.”
Joe Wykes, CEO of Jollyes, said: “Kester Capital has been a strong partner for Jollyes over the last six years, and an invaluable adviser to me since I joined.
“We have valued their expertise and guidance as we accelerated our growth plans, and are grateful for their support and the foundation they’ve built for the next chapter in our story.”
Throughout its investment period, Kester Capital has supported Jollyes in assembling a high-calibre management team, led by CEO Joe Wykes and Chairman Richard Cotter, to drive a broad programme of repositioning and operational improvement. This includes launching a loyalty programme with high participation rates, expanding the own brand offering, rolling out veterinary and grooming services, and maintaining a Trustpilot score of 4.8. The company also completed several bolt-on acquisitions and transitioned to central distribution under Kester Capital’s ownership.
TDR Capital’s investment, alongside management reinvestment, is set to enable Jollyes to continue its growth trajectory as an independent business.
The transaction involved advisory roles from Houlihan Lokey, PwC, and Osborne Clarke for Kester Capital, with HSBC, Barclays, PwC, and CMS advising TDR Capital. Management received guidance from Jamieson, Blick Rothenberg, and Osborne Clarke.
The deal is expected to close in March.
