Endless buys world’s oldest conservatory company

THE MANCHESTER office of turnaround fund Endless has bought a timber-frame conservatory specialist in Darlington for an undisclosed sum.

Amdega, a Darlington-based business in which private equity firm 3i had a stake, is the oldest conservatories maker in the country, having been set up in 1874 to provide conservatories, orangeries, gazebos and summer houses to consumers and to businesses such as hotel operators Four Seasons and Gleneagles.

The investment from Endless will provide additional working capital to the Amdega, which employs 220 people.

In the year to September 30, 2009, the company made a pre-tax profit of £74,000 on sales of £16.3m and had net assets of just over £1m.

High street bank HSBC has also provided bank loans to the business.
Endless said that the deal was the 10th done from its successful Fund II and adds to the firm’s strong trackrecord of investing in the building products sector – it also owns Darwen-based Crown Paints.

Warwick Ley, partner at Endless in Manchester, said: “Whilst sector conditions are tough, Amdega boasts an illustrious history and occupies an enviable brand position in its market. We are very excited about the long-term prospects for the business.”

Steve Sutherland, chairman of UK building facade contractor, Dortech Architectural Systems, joins Amdega as executive chairman.

He had previously also worked with Endless at Manchester-based bespoke furniture company Neville Johnson, which was later sold to Key Capital Partners.

“This investment from Endless will play a key role in allowing the management team and I to build on its longstanding position as a market leader in the industry,” said Mr Sutherland.

The company was advised on the investment by law firm Cobbetts, while Addleshaw Goddard advised Endless.