Morphsuits founders win £4.2m backing from investment fund

By PETER RANSCOMBE
Published on 02/07/2012 15:49

THE maker of the Morphsuits fancy dress outfits today secured a £4.2 million investment from the Business Growth Fund (BGF) to boost its overseas operations.

Gullane-based AFG Media – which was set up in 2009 by Edinburgh University graduates Gregor Lawson and brothers Fraser and Ali Smeaton – said it would use the cash to expand into China, Europe, Japan, Mexico and Russia.

Lawson is the brother of Scotland rugby international Rory, son of former international and new SRU president Alan and grandson of the late television commentator Bill McLaren.

The firm, which saw turnover soar from £1.2m in 2010 to £11m this year, is looking to build on its success in the UK and the United States.

AFG will also develop its range of Morphsuits for children and its recently-launched “Royal & Awesome” brand of golfing outfits and its “Foul Fashion” range.

The global market for party goods is estimated to be $10 billion (£6.4bn) a year, with Halloween alone worth some $6bn.

Under the deal, Ralph Kugler – a former director at InterContinental Hotels and Unilever – will join as chairman of AFG.

The funding, in return for a minority stake in AFG, is the £2.5bn BGF’s fifth investment in the past four weeks and its third in Scotland since March, following a £7.8m deal for Aberdeen-based oilfield services firm Stats and a £3.9m boost for Glasgow-based M-Squared Lasers.

Duncan Macrae, investment director for the BGF, who joins the AFG board, said: “This is an exciting opportunity to back a rapidly-growing business with a talented and driven management team.”