Neville Johnson

www.nevillejohnson.co.uk

Transaction Type: MBO
Status: Exit
Sector: Bespoke Furniture
Investment Date: February 2006
Deal Size: £2 million
Disposal Date: March 2008
Return: 7x

Endless Contact: Warwick Ley

BACKGROUND

Neville Johnson Offices design and manufacture bespoke fitted furniture for the home office, bedroom and home cinema. Neville Johnson pioneered the concept of the home study over 17 years ago and has led the market ever since, creating high quality furniture concepts for all areas of the home.
The company's reputation is based on excellent design, production quality and first class customer service. Neville Johnson produces annual revenues of £13 million, representing a 33% share of its market and employs 150 people at its production facility in Manchester.

INVESTMENT COMMENTARY

Neville Johnson has an exceptionally strong brand and market position. However, its performance stagnated from 1999 following a management buy-out which left the company over geared and constrained of cash and capital investment. It was testament to the strength of the company's brand and management team that it managed to maintain a market leading position despite this position.

Alongside our acquisition in February 2006, we completed a financial restructuring, which reduced gearing by £10 million and injected fresh working capital funding. This re-invigorated both the business and management team who responded by driving significant improvements in operational performance.

In March 2008, a £12.5 million secondary buyout supported by Key Capital Partners provided a highly successful exit for Endless. 

More details on Neville Johnson can be found at   www.nevillejohnson.co.uk. 

 

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