Arts and crafts supplier Teaching Art inks £4m private equity investment

Art materials supplier Teaching Art Limited has put pen to paper on a seven-figure investment deal fund its expansion.

The company, which sells a range of paints, inks and other products from premises in Salford and Newark, Nottinghamshire, received £4m from PHD Equity Partners and Praetura Commercial Finance.

Teaching Art Limited is best known as the business behind the SAA, a club for artists that currently boasts more than 43k members.

Founded 25 years ago the SAA, formerly the Society of All Artists, runs exhibitions, awards and events.

Teaching Art also sells materials through its Artifolk and SAA websites, in addition to supplying a retail network that includes Hobbycraft and Ryman through its trade company, Artcoe.

The company, accredited as an Amazon Prime supplier, has its own TV studio in Newark where it produces content for its digital channels.

Teaching Art was founded in 1986 by John Hope-Hawkins and the SAA launched six years later. Today, the firm employs more than 60 staff and is run by the founder’s son, managing director Richard Hope-Hawkins, alongside finance director Jean Ellison.

Following the latest investment, both will remain on board to help PHD implement its growth strategy for the business.

Andy Dodd and Craig Richardson led the transaction for PHD Equity Partners, which is the private equity arm of advisory group Dow Schofield Watts.

Andy said: “Arts and crafts is a fast-growing market, driven in part by the general increase in leisure time for everyone, but particularly the ‘empty-nesters’ and the newly retired.

“Teaching Art is well established business with an enthusiastic and loyal customer base and a highly efficient distribution network.”

Craig Richardson commented: “We see huge potential to increase engagement with SAA members, develop new products and services and expand sales in Europe and beyond.

“We look forward to working with the management team as the company enters this exciting new stage in its growth.”

Rob McCarthy, of Dow Schofield Watts Transaction Services, provided financial due diligence. Keith Miller and Nick Woodward, from Dow Schofield Watts VAT and Tax Services, provided PHD Equity Partners with tax advice.

Legal advice was provided to PHD by Ian Riggs and Sean Lightfoot from the corporate team at Hill Dickinson. The banking team at law firm Bermans advised Praetura Commercial Finance.

Insurance broker Vista carried out insurance due diligence, while property consultants Sanderson Weatherall carried out stock and AR valuation.

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