Stirling-based family paint merchant, The Paint Shed has received investment of £2.7 million from investment firm BGF to expand its online presence and accelerate the roll out of additional stores.
The funding will support the roll out of five new stores, with sites planned in both Scotland and England. Meanwhile, the investment will further grow the company’s online presence and ecommerce capabilities creating an additional 20 jobs over the next 24 months.
The Paint Shed was founded by Ogilvie Rolland in 1995 and sells a wide range of branded trade paints and accessories to independent painters and decorators and retail consumers via its ecommerce site and through its network of 15 stores across central Scotland.
During lockdown The Paint Shed quickly adapted to the closure of its stores and focused on driving online sales with the launch of a new click and collect service. The Paint Shed also completed work on its newest outlet in Anniesland, which opened in March, alongside its network of other stores.
Rolland said:“The past few months have been challenging for many companies, our staff and management have worked hard to ensure that the business is ready to operate in our new normal way to shop for paint. Over the past four years our online sales have grown by 100% year on year, and this has accelerated further post the coronavirus outbreak.
“This investment will help support The Paint Shed through our next phase of growth. It will enable the expansion of our online presence and accelerate the roll out of more stores throughout the country which will create 20 jobs over the next two years.”
The Paint Shed has appointed Angela Luger, former CEO of N Brown, as non-executive Chairperson following an introduction by BGF. Angela has significant experience in growing retail businesses previously spending five years as chief executive of N Brown and The Original Factory Shop, and has held senior executive positions at Debenhams, Asda and Mars.
She said: “It is no question that times are tough for businesses, but there are also many opportunities to capitalise on. The Paint Shed has delivered considerable growth in the past five years and adapted well to the challenges that Covid has presented. I’m excited to join the board to help the company deliver its ambitious future growth plans.”
Graham Clarke, BGF Investor who will join the Board, said: “Covid-19 has resulted in some of the most challenging trading conditions businesses have ever experienced and it is vital to support companies that have strong growth potential so that they can exit lockdown and capitalise on future opportunities.
“Having built a strong relationship with Michael, Jonathan and Ogilvie at The Paint Shed over the past four years it is fantastic to see how the team has successfully grown the business over this period and more recently reacted quickly to adapt the business in response to Covid-19 out-break and ensure it is in the strongest possible position to deliver its long term expansion plans. We are delighted to be supporting the next phase of growth.”
The investment was led by Graham Clarke and Patrick Graham at BGF.
The advisers to the transaction were:
BGF: CMS Cameron McKenna Nabarro Olswang LLP (Legal), Mazars (Tax), John O’Kane (Financial Due Diligence),
The Paint Shed: Addleshaw Goddard LLP (Legal).