Howies acquisition secures successful exit for Finance Wales
investment
13/02/07
One of the UK’s strongest active sports brands, West Wales-based
howies Ltd, has been acquired by US footwear and apparel giant The
Timberland Company in a deal that concludes Finance Wales’
successful financing of howies.
The deal will allow howies, which prides itself on its well
designed, high quality products and its ethical stance on
environmental issues, to continue its high growth plans at its base
in Cardigan, Ceredigion.
Since 2005 the clothing firm has received two rounds of equity
investment totalling £650,000 from Finance Wales, a wholly owned
subsidiary company of the Welsh Assembly Government created to
provide commercial funding to Welsh SMEs. The acquisition by
Timberland has resulted in the third profitable divestment for
Finance Wales from its equity portfolio.
howies was formed in the mid-1990’s when young advertising
executives David and Clare Hieatt began selling t-shirts from their
London flat. The brand rapidly became a favourite label for
mountain bikers and skateboarders and was voted one of the
strongest UK brands by Cool Brand leaders.
After quitting their jobs in London, they moved back to Cardigan in
2001 and, with the support of family and friends, put all their
efforts into howies full-time.
Realising they needed funding to grow the business, a Finance Wales
investment helped them to expand the Cardigan-based business,
invest in new technology and strengthen the management team. The
company currently employs 20 people in a range of roles in
Cardigan.
The company’s clothes are made with ethically sourced, high quality
materials, and it is committed to giving a percentage of its
turnover to environmental and social projects.
David Hieatt said the investment from Finance Wales had ensured the
company’s growth and had helped lead to the acquisition by
Timberland. “The equity investment was crucial in helping our
business grow. It enabled us to proceed with our plans which
ensured increased turnover without comprising our strong ethical
stance – something we are very committed to.”
“The deal with Timberland will allow us to grow further while
maintaining all of our standards and values. We’re very pleased
with the support from Finance Wales which has enabled howies to
build such a strong, profitable brand.”
Andrew Davies, Minister for Enterprise, Innovation and Networks,
said: “Companies with high growth potential need to be able to tap
into readily available funds that can help them reach their full
potential. The investment by Finance Wales into howies has ensured
this young and exciting company can grasp and fulfil the
opportunities it aspired to and highlights the importance of such
funding for Welsh SMEs.
“We can be justly proud that a Welsh company with a high profile
brand has been courted by companies worldwide and a leader such as
Timberland has acquired the firm allowing it to grow further while
maintaining its base here in Wales.”
Jeffrey Swartz, President and CEO of Timberland, said: “We are
excited and inspired by the brand potential we see in howies and
are pleased to welcome them to the Timberland family. We look to
invest in like-minded brands that are focused on innovation,
authenticity and integrity, and howies encompasses all of these
core values.”
Amy Preece-Jones, Investment Executive at Finance Wales, said:
“howies has built its success and reputation on being an ethically
responsible company. Finance Wales was impressed with the company’s
strong brand and market position as well as David and Clare
Hieatt’s clear creative vision.”
“Both Finance Wales’ investments were based on the company’s own
growth plans and we worked closely with them to ensure we reached
this successful outcome. It also demonstrates how effective Finance
Wales’ investments can be in ensuring the future success of SMEs in
Wales.”
HW Corporate Finance and Morgan Cole advised shareholders on the
equity investment exit.