SCOTTISH Equity Partners have helped a UK online crafts firm acquire a major business in the US.
London-based LoveCrafts have acquired WEBS, America’s leading online needlecraft company.
The deal was made possible by $22m funding, including from existing investors Scottish Equity Partners.
LoveCrafts, which has millions of users across 140 countries, also received funding from Highland Europe and Balderton Capital and Silicon Valley-based debt providers TriplePoint Capital.
The company say they have enjoyed “exceptional growth” as interest in crafting surges globally.
The firm’s orders from new customers increased by 166% from March to November last year, compared with the same period the year before.
They say the acquisition of Massachusetts based WEBS – the largest online knitting, crochet and weaving business – is pivotal for LoveCrafts Group, making it the market leader in North America in needlecraft.
The combination of LoveCrafts’ strong tech platform and global community with WEBS’ talent and industry expertise, promises rapid growth in its global customer base.
Steve and Kathy Elkins will continue to run WEBS and assume the roles of Chief Global Yarn Officers overseeing the combined needlecraft businesses worldwide.
This will allow the LoveCrafts team to further develop their content, commerce and community platform for crafts and continue to build their private label offering.
The investment will also allow for expansion into new craft categories and new geographies to increase LoveCraft’s share of a global market worth over $100bn.
Sir Peter Bazalgette, chair of the board of LoveCrafts, said it was a “landmark for our business as we focus on reinventing traditional crafts for a digital age and becoming the end to end destination for crafting enthusiasts across the globe”.
