Mamas & Papas receives funding package from OakNorth to help it grow
The digital bank OakNorth has provided a funding package to support the growth of the Yorkshire-based nursery brand, Mamas & Papas.
Founded in 1981 by David and Luisa Scacchetti, and headquartered in Huddersfield, West Yorkshire, Mamas & Papas is a designer, wholesaler, and retailer of nursery and baby products including travel systems, nursery furniture and children’s clothing.
The business is now the largest nursery brand in the UK, operating 60 stores and concessions across the country.
It also operates in 23 countries through wholesale channels. Initially a family-owned business, Mamas & Papas was acquired in 2014 by OakNorth’s customer, Bluegem Capital Partners, which was founded in 2007 by Marco Capello and Emilio Di Spiezio Sardo.
Bluegem is a private equity firm based in London, which invests in European consumer brands and businesses. Mamas & Papas reported sales growth of 14 per cent to £144m in its 2023 financial year.
Nathan Williams, the CEO of Mamas & Papas, said: “Over recent years, Mamas & Papas has continued to build momentum across all areas of the business, including our store footprint, digital offering, domestic market and overseas partnerships, helping us win a record share of the market.”
Mathieu Develay, Partner at Bluegem Capital Partners, added: “Mamas & Papas is one of the most well known and loved premium baby brands in the UK, and a haven for expectant parents. We were excited to acquire the business in 2014, and a decade on, we’ve been privileged to have a front-row seat as it has continued to go from strength to strength. Having worked with OakNorth before, we felt they’d be the ideal partner to support us with this transaction.”
Stuart Blair, Director of Debt Finance at OakNorth, which has an office in Leeds, added: “This is a very exciting transaction for OakNorth as it emphasises our ambitions to do more to support the UK’s retail sector moving forward. Given the expected growth in the UK nursery and baby products market, Mamas & Papas is well positioned to capture further market share and continue building its omni-channel presence.”
OakNorth has lent more than £350m to businesses based in Yorkshire since its launch in September 2015. It also hired a new lending director, Stephen Dinsmore, earlier this year to strengthen the lending operations out of its Leeds office.
Last year, OakNorth launched a new business banking offering, to further support entrepreneurs and businesses across the UK. It also recently opened a new Glasgow office to support more businesses in Scotland.
Director of Property & Debt Finance, James Espley, who is based in Leeds, said: "We've probably been lending in the region of between £50m and £100m to Yorkshire businesses a year since we established an office in Leeds in 2020. We increased the size of the team in Yorkshire in 2021 to become a full service business. This year we have lent between £25m and £30m so far."
He said OakNorth was looking at a number of high profile corporate deals.
"In the corporate side we've been very strong in the leisure and hospitality sector..We're also in discussions with a major house builder and supplying funding for a roadside convenience business throughout the country to help them grow their operations."