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Business Growth Fund takes minority stake in luxury toiletry company Arran Aromatics

29 Aug 2013

The UK’s Business Growth Fund (BGF) has made a £2.8m growth capital investment in Scottish luxury toiletry company Arran Aromatics.

The investment is BGF’s in the region bringing its current Scottish investment total to £26.9m.

BGF has been working with Arran Aromatics for several months with a view to accelerating its growth plans, appointing international retail veteran Alastair Kerr as chairman.

The performance of the family owned business has fluctuated over the last decade and the company was rescued from the brink of administration in 2009 by independent businessman and turnaround expert, Iain Pittman.

The company employs 120 staff and its products are sold in over 30 countries; it is also one of Scotland’s biggest exporters to Saudi Arabia. The company has a portfolio of ten retail stores, with plans to increase to 14 in the next two years, as well as nine concessions and will launch a new e-commerce website for consumer and trade customers in September.

BGF has taken a minority stake with investment director Duncan Macrae taking a seat on the board.

Macrae said,“Iain and the team at Arran Aromatics have done a tremendous job in stabilising the business and positioning it for growth. The company’s heritage, quality product offering and strong work ethic have created a very attractive investment proposition for BGF. The brand has broad consumer and trade appeal with extensive international opportunities and with appropriate investment and support, the company can maximise its inherent potential.”

Earlier this week BGF backed budget gym chain Xercise4Less with a £5m investment.

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