Founder exits as NorthEdge backs 13th deal
BOSSES of a fast-expanding door components distribution firm have bought the business from its founder in a deal backed by private equity firm NorthEdge Capital.
Denton-based TK Components (TKC), which in the year to September grew revenues to £19m from £14.4m in 2014, employs 128 people and is a key supplier to the fitted furniture industry.
It distributes kitchen and bedroom doors and other components, sourcing the majority of its products from Italy. It supplies to independent kitchen retailers, kitchen manufacturers and local installers.
Founded in 1989 by exiting director Tom Kelly, the business recently launched the Vivo Anthracite kitchen door, which has quickly become a best-selling collection due to its competitive pricing and contemporary Italian design.
In what is NorthEdge’s 13th deal from its maiden fund, the firm has supported TKC’s management team comprising of Chris Hazelhurst (commercial director), Paul Arrowsmith (finance director), Dave Grayson (operations director) and Brian Wade (supply chain director).
Chris Hazelhurst, commercial director at TKC, said: “This deal is the start of a new and exciting chapter for TKC. I’ve been involved with the business for over 25 years and have seen the company grow to become one of the UK’s leading suppliers to the kitchen and bedroom industry. TKC is supported by a hard working team that keeps the customer at the heart of everything they do, and we’re all determined to take the business to the next level with NorthEdge on board.”
The team at NorthEdge was led by partner Ray Stenton, investment manager Phil Frame and investment executive Harry Jones.
Stenton said: “What attracted us to TKC was the team’s track record of delivering growth and the opportunities in the market. We have experience in the sector through our investment in Solidor and can see the huge potential for the business. The management team has an ambitious strategy and we are all very excited about TKC’s next phase of growth.”
Founder Tom Kelly, who was advised in the sale process by Manchester-based Convex Capitial, added:”After 25 years of running TKC, I am confident that private equity is the best route for the business to support its continued expansion.
“The market is buoyant at present, and the business will benefit from NorthEdge’s investment, which will enable the team to maximise growth. With the support of NorthEdge and the top quality management team, I am confident that TKC will go from strength to strength.”
NorthEdge was advised by Deloitte (corporate fiannce and debt advice), DSW (financial due diligence), PMSI (commercial due diligence) and Kieran Toal from the Manchester office of law firm Shoosmiths.
HSBC provided banking facilities and Addleshaw Goddard provided banking legal support. Other advisers to the vendors included law firm Ward Hadaway and accounantcy firm CLB Coopers (tax).
