NorthEdge acquires Belfield via MBO

Kenny Wastell
19 July 2016

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NorthEdge Capital has acquired a majority stake in home furnishings manufacturer Belfield Furnishings as part of a management buyout.

Under its new ownership model, the company will look to ramp up its production capabilities, enabling it to manufacture products quicker and at a lower cost per unit.

The transaction marks the first investment by NorthEdge's second fund, which held its final close on its £300m hard-cap in March 2016 after just four months on the road.

NorthEdge has previously invested in the home furnishings sector, backing the buy-and-build growth strategy of Stoke-based door manufacturer Solidor in November 2014.

Debt
Clydesdale & Yorkshire Bank provided a debt package and working capital facilities to support the Belfield deal.

Company
Founded in 2002 and headquartered in Ilkeston, Derbyshire, Belfield manufactures home furnishings including upholstered furniture, soft furnishings, mattresses and curtains. It focuses specifically on the wholesale market, with clients including M&S, Next, Ikea, John Lewis and Furniture Village. The business generated revenues of £132m in 2015.

People
NorthEdge Capital – John Rastrick (partner); Tom Rowley (investment director).
Belfield – Steve Hampton (CEO); Alan McWalter (chairperson).

Advisers
Equity – KPMG, Giles Taylor, Alex Hartley (corporate finance); John Moth (financial due diligence); PwC, Neal Shepherd, James Fitzgibbon (legal); Credo, Simon Bones (commercial due diligence).
Vendor – Catalyst Corporate Finance, Andy Currie, Simon Peacock (corporate finance); Browne Jacobson, Gavin Cummings (legal); EY (financial due diligence).