Advent mulls DFS listing

According to media reports, Advent is preparing to hire advisers over the coming weeks to review the company's viability for an IPO. It has been reported that the listing could value DFS in the £800m-1bn region.

Advent declined to comment.

For the nine months ending on 27 April, DFS reported a sales increase of 7.8% to £481.8m, compared with £446.8m in the same period in 2012. Ebitda also grew, rising 8.5% to £48.3m, compared with £44.5m reported in the same period last year.

The company completed a refinancing in March this year, which saw DFS issue a £310m bond enabling it to fully refinance its outstanding 9.75% bond due in 2017.

Reports of the possible listing follows the recent IPO of BC Partners-backed Foxtons, and Apollo and Oaktree's listing of Countrywide. These latest additions to the stock exchange highlight the booming housing market in the UK, from which DFS also benefits, as the uptick in house buying tends to be naturally followed by an increase in new furniture purchases.

Advent acquired DFS in April 2010 for £500m, after winning a competitive auction process. Earlier in 2010 it was reported that Permira was interested in the asset and was considering teaming up with private equity veteran John Lovering to seal the deal.

DFS was founded by Lord Kirkham in 1969, who then took the business private again in 2004 for £507m. That deal saw Nomura provide £360m in debt for Kirkham's takeover of the business, according to unquote" data.

DFS sells upholstered furniture across the UK through its network of 98 stores.

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• Topics
• Exits
• Advent International
• BC Partners
• Oaktree Capital
• Apollo Management
• IPO