PALATINE Private Equity has assumed control of Character World, Britain’s leading licensed bedding specialist, in a £36m secondary management buyout.
The deal sees Palatine take a majority stake in the Cheadle-based company in exchange for a £16m cash injection, with the remaining £20m coming from funding secured from RBS. It squeezes out Character World’s previous private equity backer RJD Partners, who led a management buyout of the company six years ago that valued it at £20m.
Founded in 1998, Character World works with character, gaming and music entertainment companies – including Disney, Marvel and Star Wars – providing licensed bedding and associated homeware products for a range of children’s age groups.
Andy Lees, partner, Palatine Private Equity, commented: “The management team has done a fantastic job in growing the business over the past few years and it’s a pleasure to be working with them as they gear up for international growth.”
Schofield Watts and Hill Dickinson advised Character World on the sale, with Clearwater International serving as counsel to the company’s shareholders. Grant Thornton provided financial advice to Palatine, while Gateley provided legal support.