Searchlight beams in on Hunter Boots

WELLINGTON boot maker Hunter has a new controlling shareholder after an undisclosed investment by private equity group Searchlight Capital Partners.

The deal is the first for Searchlight, which was set up in 2010 and is believed to be oversubscribed for its initial $750 million (£482m) fund. The company was co-founded by three executives from KKR, CVC and Apollo.

Hunter Boot, whose Scottish roots go back to 1856, will use the funds to push its international expansion drive after a difficult few years that saw it close its factory in Dumfries in 2008. Its Scottish base is now in Edinburgh’s Melville Street, where about 25 people work. The firm fell into administration in 2006 as manufacturing costs outstripped the pace of sales growth. It was rescued by a consortium that included brand management group Pentland and private investors Julian Taylor, Peter Mullen and Tory peer Lord Marland. Prior to Searchlight’s equity injection, Pentland owned roughly half of Hunter, with the other half split among the trio of private investors. These existing shareholders are said to retain a “significant investment” following the deal with Searchlight.

KRISTY DORSEY