In a significant development for the UK pet retail sector, TDR Capital has acquired a majority stake in Jollyes Retail Group Limited, the country’s second-largest pet retailer.

The transaction, set to conclude in March, marks the culmination of Jollyes’ transformative journey under Kester Capital’s ownership since 2018. During Kester Capital’s stewardship, Jollyes has experienced remarkable growth and operational enhancements:

  • Store network expanded from 64 to 100.
  • Employee base more than doubled, reaching over 1,200.
  • Consistent market-leading, double-digit like-for-like growth.
  • Revenue and profit have more than doubled, showcasing robust financial performance.

Jollyes’ success is attributed to its distinct market proposition – a commitment to value and customer service. Operating in the thriving UK pet retail market, the company has tapped into positive long-term market fundamentals, leading to sustained growth.

Kester Capital’s Successful Exit

The sale of Jollyes has yielded a commendable return on Kester Capital’s investment, with a return multiple of 4.2x and an Internal Rate of Return (IRR) of 29%. This marks Kester Capital’s third consecutive exit with a return over 4x and the seventh consecutive exit over 3x, reaffirming its proficiency in value creation.

Adam Maidment, Managing Partner at Kester Capital, expressed pride in Jollyes’ achievements, highlighting the substantial workforce and financial growth, positioning it as one of the country’s premier specialty pet retailers. He emphasized that Jollyes is a quintessential value creation story for Kester Capital.

Joe Wykes, CEO of Jollyes, commended Kester Capital’s partnership, acknowledging their pivotal role in accelerating growth plans. Wykes expressed gratitude for the guidance provided during their collaboration, setting the foundation for the next phase of Jollyes’ journey.

TDR Capital’s investment, coupled with management reinvestment, aim to positions Jollyes for sustained success as an independent business.