Piper, has sold its stake in The Rug Company to Palamon Capital Partners. The Rug Company is the preeminent global luxury rug brand. Under Piper’s investment, it has more than doubled sales and expanded worldwide with 12 new store openings. Financial terms of the transaction were not disclosed.
The Rug Company was founded in 1997 by husband and wife team Christopher and Suzanne Sharp, who recognised a gap in the market for artisan quality, handmade contemporary rugs. Today the business has a range of more than 300 rug designs, including its own Contemporary Collection developed by the company’s in-house design team, and its Designer Collection through collaborations with over 30 designers from the worlds of fashion, interior design and textiles (such as Alexander McQueen, Paul Smith and Vivienne Westwood). Rugs are handmade and produced using traditional weaving skills in Nepal.
Since Piper’s investment in 2008, The Rug Company has expanded across the globe, opening four new stores in North America, two in Europe and several new franchises worldwide. Piper has also helped the business develop its senior management and sales teams. Revenues at The Rug Company have increased from £11m to £23m.
Christopher Sharp commented: ‘We are immensely proud of the excellent reputation The Rug Company has achieved in the world of interiors, design and fashion. Piper has been a fantastic partner. Its in-house experts have been incredibly helpful in supporting our growth, developing our e-commerce and systems and, most importantly, enabling us to build the right team for the future. We are sad to say goodbye to them, but are excited by the next phase of our growth with Palamon Capital Partners who clearly share our passion for excellence and a belief in the values that have been fundamental to the company’s success.’
Chris Curry, of Piper, said: ‘Piper is all about partnering with entrepreneurs to help them accelerate the growth of their businesses and build iconic brands. This is exactly what we have done with The Rug Company, developing a highly innovative, energetic, international luxury business with excellent growth prospects. We are delighted with the outcome of this deal which has delivered a good return for our investors. We are also proud of what we have achieved with The Rug Company and we wish Christopher, Suzanne and the team well for the future.’
Piper was advised by PwC (Corporate Finance) and Pinsent Masons (Legals).