Private equity firm Permira, known for its ownership of Dr. Martens, is vying for a minority stake in the rapidly growing sportswear brand, Gymshark. The company, which has been the owner of Dr. Martens since 2014 and also supports popular clothing label Reformation and Swedish fintech startup Klarna, has recently submitted a bid to secure a stake in Gymshark. Other contenders in the bidding war include American growth equity firm General Atlantic Partners, TSG Partners, L Catterton, and Inflexion Private Equity.

Gymshark, founded by Ben Francis, has achieved remarkable success through its strategic use of social media endorsements and has quickly risen to become one of the UK’s fastest-growing fashion brands. In the year leading up to July 2019, the company witnessed a significant increase in its revenues, reaching an impressive £176 million. The upcoming stake sale has attracted substantial interest, particularly given the challenging circumstances surrounding the fashion industry due to the ongoing coronavirus crisis. Gymshark stands out as a thriving brand, with its focus on comfortable activewear and its commitment to promoting well-being.

In April of last year, Gymshark attained a valuation of £500 million, and Ben Francis is now contemplating a valuation of approximately £1 billion. This substantial growth and potential valuation have captivated the attention of private equity firms seeking investment opportunities in the fashion sector. Despite the struggles faced by many fashion retailers, Gymshark’s exceptional performance has positioned it favorably in the industry.

Useful links:
1. Gymshark Official Website
2. Permira Official Website