Neville Johnson Offices Limited, the furniture company known for its superior products including home study suites, has secured funding from Endless LLP, the UK buyout fund, to strengthen the company’s position as a leading designer, manufacturer and installer and prepare for its next stage of development.
The secondary management buyout, which sees Endless take a substantial stake in the business, will enable Neville Johnson to build on its strategy of supplying high-quality furniture to its core study, bedroom, home cinema and commercial markets while also developing growth opportunities such as new-build homes and the highly successful "24-hour" concept.
The £2 million investment, representing the purchase of share capital and a working-capital injection, is the latest in a series in early 2006 by the newly established buyout and turnaround fund, Endless.
The deal secures 150 jobs in a profitable business with an advanced manufacturing facility at Trafford Park in Manchester and sales offices at Gerrards Cross in Buckinghamshire, Wilmslow in Cheshire and Stirling, central Scotland. Neville Johnson achieved earnings of £600,000 (ebitda) in 2005 on turnover of £13 million.
Established in 1988, Neville Johnson quickly became a leader in home-office furniture and in 1999 was the subject of a management buyout from Calderburn plc, supported by 3i Group and HSBC.
Among the company’s growing areas is the 24-hour room, a unique furniture concept that enables customers to work, rest and play all in one room. This state-of-the-art facility combines study, bedroom and home cinema and can be designed to personal needs, with features including a concealed study area, wardrobe, remote-controlled bed and integrated technology.
Heading the business as Chief Executive will be Nigel Pailing, currently Sales and Marketing Director, with Keith Bennett as Finance Director. Tony Barry has departed as Chief Executive to pursue other business interests, as has the Chairman Maxwell Pack. A new Chairman will be announced in due course.
"Neville Johnson is an outstanding business with an established brand and reputation for excellence in a high-quality market," said Mr Pailing. "This deal positions us to make the most of a number of future opportunities and everyone at the company is absolutely committed to its success."
Garry Wilson, Partner of Endless LLP, commented: "We are delighted to have secured the future of this excellent business. We were attracted by Neville Johnson’s market leading position and reputation for quality, underlined by strong cash flow and margins. There are significant opportunities to take this respected brand into new areas.
"We were able to complete this transaction quickly and believe no one can compete with Endless on our speed of transaction.
"This is the third major deal for Endless since we set up in December 2005 and we are encouraged by our progress. We are currently working on a number of other opportunities among quality UK regional businesses."
Debbie Jackson, Partner in the Corporate department of Walker Morris in Leeds, advised on the legal aspects of the transaction.
Further information:
Neville Johnson
Nigel Pailing +44 (0) 161 873 8333
Endless LLP
Garry Wilson
Partner +44 (0) 7785 225147
garry.wilson@endlessllp.com
Darren Forshaw
Partner +44 (0) 7887 625110
darren.forshaw@endlessllp.com
Media enquiries:
Capital MS&L
Peter Curtain /
Annabel O’Connor
Annabel.oconnor@capitalmsl.com +44 (0) 20 7307 5330 /
+ 44 (0) 7711 608747
www.capitalmsl.com
Neville Johnson
Neville Johnson is a leader in the innovative design, manufacture and installation of high-quality bespoke furniture concepts adding value in both home and business environments. Employing the finest materials and craftsmanship, the company is committed to using its brand to expand into areas such as home entertainment, new-build homes and the 24-hour concept. Neville Johnson is 100% committed to customer satisfaction.
http://www.nevillejohnson.co.uk/
Endless
Endless provides investment and financial advice to support buyout, turnaround and re-financing situations with equity and debt injections. Based in Leeds, the firm prides itself on its market-leading speed combined with ultra-efficient service. Endless makes its own investment decisions, without any need for approval by a credit committee. Supported by private investment, Endless has raised an initial fund of £100 million to invest.