AFG Media Exits BGF Partnership with £42 Million Turnover
Deal News | Nov 05, 2024 | Business Growth Fund (BGF)
BGF has announced the successful exit from its investment in Edinburgh-based AFG Media, the company behind the iconic MorphCostumes. Originally investing £4.2 million in 2012 in a minority stake, BGF's involvement helped facilitate the company's global growth and several key mergers and acquisitions, including a notable merger with Digital Dudz in 2013 and the acquisition of Fun Shack in 2019. By 2023, AFG Media achieved a turnover of £42 million and expanded its reach to 12 countries while employing 68 staff. The exit was accomplished through a company and management buy-back, providing substantial returns on BGF's original investment. This exit marks the end of a 12-year partnership between BGF and AFG Media, with the firm now focusing on continued expansion in new markets.
Sectors
- Investment Management
- Consumer Goods
- Retail
Geography
- United Kingdom – AFG Media is headquartered in Edinburgh, and BGF is a UK-based private equity firm.
- United States – AFG Media has expanded its retail presence into the US market through partnerships with Target and Walmart.
- Mexico and Canada – AFG Media recently expanded its distribution to Mexico and Canada, marking significant geographical growth.
Industry
- Investment Management – BGF, a private equity firm, was involved in investing and managing its stake in AFG Media.
- Consumer Goods – AFG Media operates within the consumer goods sector, specifically in the costumes and apparel market.
- Retail – AFG Media's products are sold via Amazon, Target, Walmart, and other retailers, highlighting its involvement in the retail industry.
Financials
- £42 million – AFG Media's turnover in 2023.
- £4.2 million – BGF's original investment in AFG Media in 2012.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| AFG Media | Target Company | Company | A Scotland-based costume company known for its MorphCostumes brand. |
| Business Growth Fund (BGF) | Private Equity Company | Company | A UK-based growth capital investor that supported AFG Media's expansion over 12 years. |
| Digital Dudz | Merged Company | Company | Merged with AFG Media in 2013 to enhance the costume offering. |
| Fun Shack | Acquired Company | Company | A 2019 acquisition by AFG Media to expand its product range. |
| Fraser Smeaton | Co-Founder | Person | Co-Founder of AFG Media, involved in the growth and management of the company. |
| Patrick Graham | Head of Scotland & Northern Ireland | Person | Head of Scotland & Northern Ireland at BGF, involved in the investment and exit process. |