Zeus Private Equity takes a stake in flower power

Manchester-based Zeus Private Equity (ZPE) has made the second investment from its maiden fund, taking a majority stake in online floral and gifting company, Flowers Direct Limited.

Since its inception in 2002, Flowers Direct has established the second largest floral relay network in the UK, with 1,200 member florist shops. A multi-channel retailer selling products via its website, call centre and store relay network, Flowers Direct is based in Morecambe and employs more than 100 people.

Under the leadership of founder and Managing Director, Ian Rawlins, the company has also developed a branded customer base, whereby Flowers Direct supplies the online floral and gifting offering, including flowers, wine, soft toys, hampers, perfumes and experience days, to major retailers, such as Debenhams and Boots.

In May 2007, the company’s rapid expansion culminated in the acquisition of competitor, Flowergram. ZPE’s investment will now allow Flowers Direct to invest further in operational infrastructure and senior personnel in order to continue its impressive growth.

The deal was introduced to ZPE on an exclusive basis by one of the private investors in their fund. ZPE has introduced Pets at Home’s Anthony Preston as Chairman and Michael Fort, currently CEO of AIM-listed Synexus, also joins the board as a non-executive Director. ZPE partners, Gary Tipper and Ed Fazakerley, will also join the board as non-executive Directors.

Commenting on the deal, Gary Tipper, Managing Partner of ZPE, said: "The floral market has experienced enormous growth over recent years, due in part to increased availability via online and call centre channels. The online sector in particular is set to show continued growth and Flowers Direct’s ability to provide a same-day service through its extensive relay network means that there are significant opportunities to increase revenues."

ZPE was advised on the deal by Rebecca Grisewood, Mark Dawson and Adam Hulme at Halliwells. Financial due diligence was carried out by Matt Copley and Stephen Green at BDO Stoy Hayward, with management due diligence conducted by Mark Kennedy at MKonsult.

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