Risk Capital Partners Backs The Deal

Law firm Irwin Mitchell has advised Risk Capital Partners on the buyout of leading music instrument retailer, GAK.

Founded by Gary Marshall almost 30 years ago as a local market stall, the Brighton based retailer has since diversified and become an omni-retailer with over two thirds of its revenues now generated through online sales.

The founder is handing over the business to the joint managing directors, Max Mckellar and Ian Stephens with the support of Risk Capital Partners, which becomes the majority shareholder.

Gary is retaining a stake in the business and Luke Johnson of RCP joins the Board as chairman.

The management at GAK plan to grow the business both online and via retail expansion, developing the brand and widening the product range in the coming years. They also intend to explore new markets.

Adam Kaucher, corporate partner at Irwin Mitchell, led the team advising RCP on the deal, together with Simon Tager, Robert Farrell and Greg Mazgajczyk. 

Expert Opinion

“GAK has grown into very successful retail business with a turnover of £35 million and 70 staff. The management team know the business well and understand the market and I’m confident that they, together with expertise of Risk Capital Partners, will continue taking the business forward and expanding its presence in the market.

“It has been a pleasure working with Risk Capital Partners on this transaction” Adam Kaucher - Partner

In a joint statement Max and Ian said: “We are extremely excited about working with RCP on the next phase of GAK’s evolution both as a company and a recognisable and trusted brand. We are fortunate to have an exceptional workforce and to be supported by our highly experienced and talented senior management team who will collectively continue to help us implement the many growth initiatives we have identified.

“Both GAK and our industry as a whole have encountered and overcome many significant hurdles in the past few years and we feel we are now perfectly placed to push the business forwards and take advantage of the opportunities we see ahead of us in the short and long term.”

This investment by Risk Capital Partners in GAK follows their acquisition of leading gardening website Primrose, one of the leading digital operators in consumer horticulture.