Hotter founder Stewart Houlgrave will keep a significant stake in the business according to Electra, which sealed its first deal of the year through the purchase.
Gresham invested £21m in Hotter through an MBO in December 2007.
The company sells more than two million pairs of shows each year, trading through 57 standalone stores and 200 independent outlets in the UK and home shopping and other partners in the US.
Electra chief investment partner Alex Fortescue said, “We have been tracking Hotter for several years and it epitomises what we look for in a buyout investment – a really strong UK headquartered business with not only a UK growth story but also proven international potential.
“We look forward to working with [CEO Peter Taylor] and the rest of the Hotter team to continue to drive this UK brand and manufacturing success story forwards.”
Electra Private Equity invested £337m and realised £459m in the year to September 2013. It is the major client of Electra Partners.
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