A beauty and wellbeing brand plans to open more stores and expand its product range after securing growth capital from a major private equity firm.
Piper, the specialist investor in consumer brands, has taken a significant minority stake in Neom Organics, which was founded in 2005 by friends Nicola Elliott and Oliver Mennell.
Ms Elliott, who is a former editor of Glamour magazine, quit journalism to train as an aromatherapist and nutritionist before founding Neom with former investment analyst Mr Mennell, to focus on improving people’s wellbeing through home fragrances and skincare. The brand name is an acronym of their initials.
Neom products aim to relieve stress, aid sleep, boost energy or lift mood by using natural fragrances. All the products are made in Britain using only natural and organic ingredients.
Neom, which is based in Harrogate, North Yorkshire, is a multi-channel business which employs 50 people. Retail sales have grown by 35 per cent this year to reach £18m. Its home fragrance and skincare ranges are sold through department stores such as John Lewis, Selfridges and Fenwick in the UK and international stores including Isetan in Japan.
Neom has an online business and three of its own retail stores – two in London and one in Leeds – with further openings planned.
Piper’s investment in Neom will provide the funding to enable the business to expand its product range, develop the senior team, open new stores and increase its international footprint. It is the third investment from Piper’s sixth fund, Piper VI, which recently closed at £125m.
Mr Mennell said: “We first met Piper in 2009 and, since then, we have regularly worked with the team and drawn on their knowledge and expertise to help us achieve our growth ambitions.”
Ms Elliott added: ‘We are immensely proud of Neom and excited about the potential we have to help more and more customers meet their wellbeing needs. We genuinely believe Neom gives them easy, small steps that can help them feel their best every day.’
Libby Gibson, a partner at Piper, said: ‘We know from all our research that, with such busy lives, consumers are increasingly concerned about their wellbeing. We have admired Neom for many years and have been consistently impressed with the quality of its products and how the brand addresses a real and growing consumer need. We look forward to helping Nicola, Oliver and the team build on their success.’
Piper was advised on the transaction by Sammy Hill and Simon Hewes from Womble Bond Dickinson, Tom Hayes from Sentio and Matthew Wiseman from Catalyst Corporate Finance. Neom was advised by Dahren Naidoo from Freeths and Paul Land from TLP.