Key Capital Partners sells Neville Johnson
LONDON-based private equity firm Alcuin Capital Partners has acquired a majority stake in the Manchester furniture manufacturer Neville Johnson.
The transaction marks a partial exit for Key Capital Partners which is holding onto a minority stake.
It originally invested £4.25m for a 58% stake in a £12.5m secondary buy-out in 2008. On that occasion the business was sold by Endless which had backed managers in 2006.
A figure was not put on the latest investment but is is understood to have valued the business at £22m.
It is the third buy-out for chief executive Nigel Pailing who holds a 19% stake and said he was excited about the next stage of growth. The other shares are held by directors William Bennett, Jeffrey Forrester, Simon Meyrick and Dean Murray.
Alcuin, which also owns the British arm of Krispy Kreme and Caffe Nero, plans to invest £10m to back the opening of eight new showrooms over the next three years. Alcuin partner Mark Storey and investment director Nick Seaman led the buy-out.
The Trafford Park-based company trades under the Neville Johnson and Tom Howley brands and employs 270 staff. It recorded turnover of £33m in the year to April 2014, up 20%.
Mr Pailing said: “KCP has been instrumental in shaping our vision to become the leading provider of luxury fitted furniture for every room in the home. We are excited for the next stage of growth with Alcuin as we roll-out our brands across the UK and look to open eight new showrooms over the next three years.”
Peter Armitage, partner at KCP and non-executive director at Neville Johnson, said: “It has been a real pleasure working with a first-class management team over the years. During this period the business has almost doubled in size and we are confident itwill continue along the same trajectory with Alcuin’s support.”
Mark Storey, partner at Alcuin Capital Partners, said: “We are delighted to be investing alongside Nigel, Keith and their team to support the continuing success of Neville Johnson. Neville Johnson is a dynamic business with an excellent reputation for service, an impressive lead generation function, and rising brand recognition throughout the UK. Alcuin targets ambitious, distinctive growth companies and Neville Johnson definitely fits the bill.”
A team at KPMG advised Neville Johnson and KCP, led by Jonathan Boyers, Giles Taylor, Pinesh Mehta and Paul Dolyniuk. Will Oxley and Julia Stokes at Grant Thornton provided vendor financial due diligence. Sean Fitzgerald and Paul Johnson at Ward Hadaway provided legal advice to Neville Johnson and KCP, while Adam Greaves and Saffron Finch at Jones Day advised Alcuin Capital.
RBS in Manchester provided debt finance, led by Stuart Watson.
