Deal is perfect fit for Neville Johnson

MANCHESTER furniture company Neville Johnson has moved into the kitchen market for the first time after buying a Cheshire-based rival.

Neville Johnson, which makes and installs bespoke fitted furniture, has acquired the business and assets of Tom Howley Bespoke Furniture from administrators Baker Tilly, whose partners Lindsey Cooper and Russell Cash were appointed as joint administrators on Monday.

Tom Howley had three showrooms in Altrincham, Alderley Edge and Esher in Surrey and employed 32 staff. The business had sales of £3m in 2010.

The business was sold as a going concern, which meant that all 32 jobs were preserved. The buyer also taken on uncompleted contracts with existing customers and has agreed to finish any outstanding contracts.

“We are pleased to have concluded the sale so rapidly for Tom Howley Bespoke Furniture Limited,” said Cooper. “The company has an excellent reputation and it is great that the new owners will continue to trade and build upon that reputation. It is an added bonus that all jobs remained intact as part of the sale.”

The deal complements the growth strategy adopted in 2008 at Neville Johnson following a £12.5m secondary buyout which saw private equity house Key Capital Partners take a majority stake for £4.25m.

With more than 130 staff, it is expecting to achieve sales of £25m in 2011, up 50% since 2009.

Chief executive Nigel Pailing said: “Tom Howley is a great brand with an exclusive product offering that will add real value to the tailored services that we already provide to our customers. While still trading under its existing brand name, we plan to expand Tom Howley and launch more showrooms throughout the country.”

Peter Armitage, partner at KCP and non-executive director at Neville Johnson, said: “Neville Johnson’s success has been driven by a reputation for quality coupled with a high level of customer service and satisfaction. Tom Howley is very highly regarded in its market and will provide the perfect platform for Neville Johnson to develop a major national kitchen business by working with the existing management team.”

Neville Johnson was advised by law firm Cobbetts and Baker Tilly was advised by Hill Dickinson.