NVM backs buyout of Lancs furniture maker Buoyant
A FURNITURE manufacturing business employing around 600 people in Nelson, Lancashire, has been sold in a management buyout backed by NVM Private Equity.
NVM has invested £7m in the deal, and the total value of the transaction is likely to be more than £10m.
Buoyant Holdings, which was founded in Nottinghamshire in 1909, has been sold by East Midlands company the Wade Furniture Group. It has sales of around £50m, and recently-launched a BlueTooth-enabled sofa with integrated iPad docking station.
The company makes sofas and chairs for a broad range of retailers and is among the largest independent UK furniture manufacturers. It makes over 95% of its products from sourced raw materials at its base in Nelson.
NVM investment directors, Andy Leach and Mauro Biagioni worked on the deal. As part of the deal exerienced executive Joel Rosenblatt has joined Buoyant as executive chairman.
He said: “I’m delighted to be working with two great businesses, with NVM on the financial side as well as an exceptional management team at Buoyant – both of whom are held in high regard within their industries. We have a lot of positive things we need to do and with NVM’s support the team certainly have the energy to deliver their plans.”
Andy Leach said: “Buoyant is a major employer in Nelson and we look forward to working with the management team to grow the business. Buoyant is more than just a manufacturer – it has good design, service and innovation credentials.
“Mike Aramayo (the MD) and the team have worked together for over 12 years and are highly respected in the UK market. The business has developed a strong reputation in its market place and has successfully evolved to meet consumer trends, resulting in a substantial increase in sales.
“We are delighted to be backing a century old British manufacturing business with a strong track record and an ambitious management team.”
Mr Aramayo added: “We recognise that it is imperative to stay at the forefront of our industry by continuing to introduce new concepts and designs. Upholstered furniture is moving up the consumer spending priority, so the new funding will help us to develop our products further to meet demand in the UK and overseas.
“The team and I also see huge growth potential in motion furniture. We look forward to working alongside Joel and NVM to build our business further.”
Debt funding for the transaction was provided by PNC Business Credit.
The deal was led by Altium Capital, Manchester. DWF Manchester advised NNM on the investment. Grant Thornton’s Leeds office carried out financial due diligence and tax structuring and Walker Morris of Leeds were also involved.
Law Squire Sanders in Manchester advised PNC and Diligencia of Daresbury carried out management due diligence.