Founded in 1991, Pacific Direct is the world’s leading manufacturer and supplier of branded amenities to the luxury hotel and cruise markets. Their ‘brand boutique’ concept – miniature versions of luxury retail branded toiletry products – was a first in the hotel industry, and has attracted many prestigious clients including The Ritz and The Dorchester.
We had established a relationship with the company as far back as 2005 and developed a clear understanding of its markets and the issues it faced. In early 2008, we presented a management buy-out/buy-in proposal to the company’s founder which enabled her to retain an equity interest in the company whilst facilitating the transition to a new management team.
The Big Idea
From the very beginning, the Pacific Direct approach had been one of innovation and entrepreneurship but with limited investment in infrastructure to support the company. Our involvement provided the company with the much needed investment in management, systems and infrastructure to enable it to continue an organic growth strategy across its global operations.
The Grand Plan
After we backed the business, we recruited a complete team to manage the company, enabling the founder to disengage from the business as planned. New manufacturing capabilities were established in North America, China and the Middle East and exciting, high profile new brands, including Asprey, Neal’s Yard, Body Shop and Orla Kiely, were added to the brand portfolio.
The Bottom Line
The business continued to expand its global coverage into over 130 countries, winning major new contracts, including with Ritz Carlton. It was sold to ADA Cosmetics in September 2015, generating a return of over 3x the cost of investment.
Date of Investment: April 2008
Deal status: Realised
Date of realisation: September 2015
Investment return multiple: 3.2x cost
Company website: www.pacificdirect.co.uk
For more information talk to: Charles Gonszor or Alec Parkinson