EAC Acquires Leading Jewellery Retailers

European Acquisition Capital (EAC) in late December took a majority shareholding in Mappin & Webb and Watches of Switzerland when it backed the buyout of the businesses from the Asprey Group. The deal also included pawnbrokers TM Sutton, EA Barker and Nathan & Co, which form an integral part of Mappin & Webb’s overall business. Together, the acquired companies generate some GBP75 million (euro 109 million) turnover annually.

Mappin & Webb’s reputation as a high quality jeweller and silversmith has been built over 220 years. The company holds two Royal Warrants and has 14 stores in the UK, as well as outlets in Jersey, Guernsey, Prague and Dubai and seven concessions within Mitsukoshi department stores in Japan.

Watches of Switzerland, established in 1924 as the specialist retailer of Swiss watches in the UK, operates a chain of 18 UK stores, including the Rolex and Patek Philippe boutiques.

The buyout team was led by managing director Judith Pilkington, who joined Mappin & Webb in 1995 and formulated a five-year strategy to enable the company to retain the integrity, quality and positioning of the luxury Mappin & Webb brand while broadening its appeal to a new generation of customers. The firm has subsequently introduced contemporary designs to complement its more traditional products.

The buyout team initially bid for Mappin & Webb last July, when Asprey Group announced its intention to sell a number of its businesses. Watches of Switzerland became part of the negotiations at a later stage.

The price EAC paid for the jewellery businesses has not been disclosed. BankBoston London and Burdale each arranged half of the senior debt element of the funding, while Back Bay Capital Funding, Bank Boston’s new high-yield finance group, provided a GBP3 million junior secured credit facility to Mappin & Webb. The transaction marked Back Bay’s first UK deal and was the third investment made through EAC’s current fund, following the Leapfrog Day Nurseries and Eton Townhouse Hotels deals.