MBO at Derbyshire furniture giant
Home furnishings group Belfield Furnishings has completed a management buyout, backed by NorthEdge Capital.
Founded in 2002, Belfield is the UK’s largest white label manufacturer of home furnishings and one of Europe’s largest manufacturers specialising in the wholesale and distribution of products including upholstered furniture, soft furnishings, mattresses and curtains.
The £132m turnover company, which is headquartered in Derbyshire, works with a range of high street retailers including M&S, Next, Ikea, John Lewis and Furniture Village.
With support from NorthEdge, the company 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.
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.
Belfield will continue to be led by chief executive Steve Hampton and chief finance officer Karl Stevens, while Alan McWalter, a former M&S director, will remain as chairman and Don Coates joins the group as chief operating officer.
Hampton said: “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.”
John Rastrick, partner 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.”
The transaction was supported by the Midlands-based Specialist and Acquisition Finance team of Clydesdale & Yorkshire Bank which, led by senior directors Ian Howey and Ian Mansell, provided debt and working capital facilities.
KPMG provided corporate finance advice to NorthEdge. Credo undertook commercial due diligence and KPMG performed financial due diligence. The vendors and management were advised by Catalyst Corporate Finance, while Browne Jacobson provided legal advice and EY performed vendor due diligence.
