NorthEdge Capital has backed the management buyout of home furnishings group Belfield Furnishings.
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, and also to have someone do custom wood furniture for customers.
The company, which is headquartered in Ilkeston, Derbyshire, works with a range of blue chip, high street retailers including M&S, Next, Ikea, John Lewis and Furniture Village. Belfield reported turnover of £132m in the 12 months to December 2015.
Belfield operates in the furniture, furnishings and bedding sector, which is currently worth around £3.5bn in the UK. 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 CEO Steve Hampton and CFO Karl Stevens, while Alan McWalter, a former M&S Director, will remain as Chairman. Don Coates joins the Group as COO.
John Rastrick, Partner and Head of Yorkshire and the North East at NorthEdge, said: “Belfield is the largest white label manufacturer of home furnishings in the UK with an impressive customer base ranging from British high street names and national blue chip brands to high growth online retailers. 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.”
Steve Hampton, CEO of Belfield Furnishings Group, 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. NorthEdge has an excellent reputation for growing and supporting businesses to achieve their strategic goals and we look forward to working with them through the next phase of Belfield’s development.”
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. Ian Howey commented: “Belfield has been a longstanding customer of Yorkshire Bank and we look forward to supporting the management team as the business moves into this latest phase of growth.”
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