Private equity firm NorthEdge Capital has backed a management buyout at home furnishings group Belfield Furnishings.
Belfield Furnishings, the owner of upholstery manufacturer Westbridge Furniture Designs, said it would continue to be led by CEO Steve Hampton and CFO Karl Stevens, while Alan McWalter, a former M&S director, will remain as chairman. Don Coates also joins the Group as COO.
The buyout, which was led by Partner John Rastrick and investment director Tom Rowley, will see NorthEdge acquire a majority stake in the company. The deal marks the firm’s first investment from Fund II, which closed at £300m in March this year.
The Derbyshire-based business, which operates in the furniture, furnishings and bedding sector - currently worth around £3.5bn in the UK, reported turnover of £132m in the 12 months to December 2015, and said that the MBO will focus on its UK position to drive shorter lead times for customers; continue to deliver its collaborative design-led offering and leverage economies of scale to compete on price.
John Rastrick, Partner and head of Yorkshire and the North East at NorthEdge, said: “We have been impressed with the ability of the management team to manufacture in high volumes such a broad range of quality products. It is down to their design expertise and operational efficiency that the business has achieved such a strong offering in a sizeable and highly fragmented market.
“Our focus will be on helping Belfield to grow sales with existing customers, as well as targeting new opportunities and we are looking forward to working with Steve and the management team.”
Steve Hampton, CEO of Belfield Furnishings Group, added: “The business has performed well over the past few years. The funding from NorthEdge will allow us to increase the production of our quality products whilst also maintaining the same high levels of customer service.
“NorthEdge has an excellent reputation for growing and supporting businesses to achieve their strategic goals and we look forward to working with them through the next phase of Belfield’s development.”
Midlands-based Specialist and Acquisition Finance team of Clydesdale & Yorkshire Bank, which was led by senior directors Ian Howey and Ian Mansell, provided debt and working capital facilities, supported the transaction.
Ian commented: “Belfield has been a longstanding customer of Yorkshire Bank and we look forward to supporting the management team as the business moves into this latest phase of growth.”
KPMG provided corporate finance advice to NorthEdge, while PwC Legal provided legal advice. The vendors and management were advised by Catalyst Corporate Finance, Browne Jacobson provided legal advice and EY performed vendor due diligence.