March 9, 2020 @ 12:16 by Richard Dawson
Yorkshire-based investment firm Growth Partner has completed a £5 million investment into North East floor coverings specialist, Connection Retail, which operates through Flooring Superstore, Direct Wood Flooring and Grass Direct brands.
Having recently opened an office in Newcastle, Growth Partner invests in entrepreneur/founder-led consumer-focused businesses and is backed by Richard Harpin, CEO of listed company HomeServe Plc.
In 2015, the company invested in Dragon’s Den star Sara Davies’ business Crafters’ Companion, which had turnover of £30 million last year.
The £5 million investment into fast-growing Connection Retail has been made to spur on the flooring specialist’s growth strategy to build a footprint of 100 stores across the UK.
Connection Retail was founded by CEO Dan Foskett and COO Michael Roy in 2012, achieving £18 million turnover in the first five years rising to £30 million in the last three.
The business now has a workforce of more than 200 employees and recently opened its 17th store.
Across its three store brands, Connection Retail provides a range of floor covering products from carpets and vinyl to hard flooring and luxury vinyl tiles.
Growth Partner was advised on the investment by Andy Francey at Freeths while Connection Retail was advised by Katherine Hay-Heddle and Imogen Holland at Ward Hadaway.
Connection Retail CEO, Dan Foskett, said: “When Growth Partner first approached us we weren’t looking for investment but the more we understood about the way they operate and the level of experience and strategic advice that Richard could bring to the business it soon turned into a very exciting opportunity.
“We’ve already built up a really strong relationship with Alex working through the investment process which has been a very positive experience and we’ve identified lots of great ideas and strategic opportunities to grow the business.
“Our aim has always been to transform the flooring industry and become the market leader. With this investment we are confident we have all the necessary experience and expertise around the table to do exactly that.”
Growth Partner investment director, Alex Marsh, added: “In an increasingly challenging retail environment Dan and his team have established an agile operating model, capitalising on the consumer shift towards e-commerce for home improvement products whilst also rolling out a scalable and complimentary retail model.
“Growth Partner is delighted to be backing such a talented and ambitious entrepreneurial team and we’re excited to be working with Dan, Michael, Glen and Jason to build a market leading business.”