Gresham gets Hotter Shoes

Gresham, a UK mid-market private equity firm, has invested £21m (US$43m) in Hotter Shoes, a footwear brand for the grey market.

HSBC provided debt. Ernst & Young, Cobbetts, KPMG and DLA Piper advised on the transaction.

Gresham’s investment will provide financing for development of Hotter’s direct marketing strategy and expansion of its product range.

Established in 1959, Hotter sells its footwear through mail order catalogues and has four retail outlets across the UK. According to the firm, the grey market is set to grow due to an ageing population and rising foot health problems associated with obesity, diabetes and arthritis.

Andy Marsh, partner at Gresham who led the deal, said: “It is a niche brand focused on the affluent grey market where we can see exciting growth potential. Also the business has real scalability through its direct marketing channels via mail order catalogues and internet.”