Acquisitions on agenda
MorphCostumes plots M&A plan with Fun Shack deal
Morphsuits have become an international phenomenon
MorphCostumes, the manufacturer and online fancy dress retailer, has hit the acquisition trail, buying Fun Shack, which designs, makes and sells a range of costumes through Amazon and other online retailers.
Fun Shack, which also sells through a network of 200 shops, was founded in Leeds by Jeffrey Fearnley and Harvey Felstone in 2008 and has grown its annual revenues to £3m and its headcount to 12 staff.
MorphCostumes plans to export Fun Shack’s costumes – which are primarily available in the UK – through its existing international distribution channels, targeting countries including Australia, Canada, France, Germany, Italy, the Netherlands, Spain and the United States.
Fraser Smeaton, chief executive at MorphCostumes, said: “Fun Shack has been on our radar for the past couple of years thanks to its range of good-quality costumes. They make outfits that are classics – they never go out of style.
“We believe its ranges of historical, storybook and many other classic costume designs will appeal to an overseas audience just as much as they have done to customers here in the UK.
“We already have the sales channels in place to take this business to the next level and we’re looking forward to integrating its products into our range.”
Brothers Fraser and Ali Smeaton founded AFG Media, MorphCostumes’ parent company, in 2009 with Gregor Lawson after a night out that inspired the invention of the world’s first Morphsuit, a head-to-toe spandex fancy dress outfit that has grown into an international phenomenon.
Some of its most-popular costumes include characters from films such as Deadpool, Spider-man and Power Rangers, alongside official WWE wrestling outfits.
BGF, the UK’s most active investor in growing companies, bought a minority stake in AFG Media for £4.2m in 2012 to accelerate the company’s expansion.
Keith Dinsmore of legal services firm Vialex in Edinburgh advised AFG Media.