3i-backed GartenHaus continues its international growth with the acquisition of Outdoor Toys in the UK

3i Group plc (“3i”) today announces that A-Z Gartenhaus GmbH (“GartenHaus”), a digital leader in garden homes, sheds, saunas and related products in North Europe, has acquired Outdoor Toys, a leading online D2C retailer of outdoor garden toys in the UK. As part of the transaction, 3i will invest c.€56m of additional capital.

Founded in 2006 by James Owen and based in Mid Wales, Outdoor Toys is among the largest outdoor garden toys specialists in the UK. The company offers over 1,000 products and specialises in Modular Toys, including swing sets, slides and climbing frames, as well as ride-on toys, trampolines, sandpits and accessories. The company operates a vertically integrated value chain with its own product design, UK manufacturing, customer service, dedicated logistics fleet and direct online sales to customers through its own website as well as online marketplaces.

Outdoor Toys is known for its comprehensive customer service and strong customer satisfaction, with a reputation for quality. The company has delivered sales growth of 70% per annum since 2019 and shipped over 1 million items in the last twelve months.

This acquisition expands GartenHaus’s product portfolio and geographic reach whilst also enabling Outdoor Toys to increase its international reach. The combined business will be able to cross sell its products to customers as well as benefit from online marketing, customer service and supply chain synergies. The acquisition also supports GartenHaus’s ambition of building the leading European platform for home and garden projects.

Today’s acquisition is the second for GartenHaus since 3i’s investment in September 2020 and follows the addition of Polhus, a leading online retailer of garden houses and related products based in Scandinavia, in late 2020. Based on the strong organic performance of GartenHaus as well as the two strategic acquisitions, total EBITDA of the group has tripled since 3i´s original investment.

James Owen, founder and CEO of Outdoor Toys said: “We are delighted to be joining forces with GartenHaus to bring our award winning products to even more customers across Europe. We are excited for the future and look forward to continuing to grow Outdoor Toys whilst benefitting from the know-how of GartenHaus and its strong platform.”

Sebastian Arendt, CEO of GartenHaus commented: “I would like to welcome James and the Outdoor Toys team to GartenHaus. There is a strong fit between our businesses and we look forward to working together as we continue our growth. 3i’s backing and international network have been instrumental in our achievements to date and we are excited to look ahead at further international expansion.”

Peter Wirtz, Partner 3i added: “GartenHaus and Outdoor Toys are a great combination and we are very happy to sign our second acquisition only a year after investing in GartenHaus. This transaction fits with our strategy of building GartenHaus into the leading European platform for home and garden projects.”

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About 3i Group

3i is a leading international investment manager focused on mid-market Private Equity and Infrastructure. Its core investment markets are northern Europe and North America. For further information, please visit: www.3i.com

About GartenHaus

Hamburg-based A-Z GartenHaus GmbH was founded in 2002 and employs over 100 people. With over 1 million monthly users, it is the digital market leader for home and garden projects in Germany, Austria, Switzerland, Benelux and Denmark. Since 2020 the digital leader for garden houses in Scandinavia, Polhus, is part of the GartenHaus group with webshops in Sweden, Norway, Finland, France and DACH.

As a digital specialist, GartenHaus GmbH has developed an innovative online shop including price comparison and unique and rich media content for a product range of 30,000 items and services. Consequently, GartenHaus GmbH offers the largest product assortment in Europe from 100 third party and 7 private label brands, such as Alpholz, FinnTherm, Terrando, Kibungi and POOLCREW. The product range includes garden sheds, saunas, patios, carports, garages, children''s playhouses, pools, green houses and much more. On request, GartenHaus GmbH handles the entire garden and home project, from A to Z: assembly, consultation, planning permission, foundations, maintenance and accessories. The extensive range of services includes products made to measure and configurators allowing customers to design products individually.

For further information, please visit: www.gartenhaus-gmbh.de, www.polhus.se

About Outdoor Toys

OutdoorToys was founded by CEO James Owen in 2006 and developed into one of the UK’s digital leaders for children’s toys and play equipment. With its modular design philosophy, its eCommerce platform and an agile manufacturing process it has disrupted the market. From humble beginnings the company quickly established itself in the market with its 100% D2C model built on a leading technology platform that enables the customer’s experience to be tailored to their unique requirements.

For further information, please visit: www.outdoortoys.co.uk

Regulatory information

This transaction involved a recommendation of 3i Investments plc, advised by 3i Germany.