Advent sells half its stake in DFS for £61.7m

The sale values DFS shares at 240 pence apiece, down from 300 pence when Advent sold a 14% stake in the company for £90m in April this year. At the time of publication, the group’s share price had dropped further to 235 pence each.

The partial divestment accounts for half the GP’s remaining shares in the business, bringing its overall stake to 12%.

DFS listed in March 2015, with shares priced at 255 pence apiece – towards the lower end of the initial 245-310 pence range. The IPO valued the business at £543m.

The IPO followed a recapitalisation of DFS in March 2013, which saw it issue a £310m bond that enabled it to refinance its outstanding 9.75% bond due in 2016.

In October 2015, Advent sold down a 15% stake in the company for £94m, valuing DFS shares at 295 pence apiece.

Jefferies International and UBS acted as bookrunners and placing agents in the latest offering, while Joh Berenberg Gossler & Co acted as lead manager.

Previous funding
Advent acquired an 85% stake in DFS from founder Lord Kirkham in a £500m deal in April 2010, beating competition from Cinven and Permira. Lloyds TSB provided a debt package to support the transaction.

Company
Founded in 1969, DFS is a retail chain specialising in the manufacture and sale of household sofas. The company generated a turnover of £980m in its most recent financial year and adjusted EBITDA of £94.4m.

People
DFS – Ian Filby (CEO).

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• Topics
• Exits
• UK / Ireland
• Consumer
• Advent International
• United Kingdom
• Partial sale