BGF invests in Chesney's

Richard Reynolds, co-owner of bathroom retailer CP Hart, has also taken part in the round and will assume the role of chairperson at Chesney’s.

Financial details of the transaction remain undisclosed. However, the company generated £676,000 of profits on ordinary activities before tax in its most recent financial year, according to publicly available records, while BGF typically makes initial investments of £2-10m for minority equity stakes.

The fresh capital will enable Chesney’s to undertake an international expansion strategy, with a focus on the US and Chinese markets, and the launch of its barbecue and outdoor heating range. The company will also invest in new retail showrooms, in addition to its existing locations in London, New York, Beijing, Shanghai, Shenzhen and Istanbul.

According to a statement issued by BGF, Chesney’s will look to increase its revenues to £30m within three years, compared to its £15m turnover in 2015.

Company
Founded in 1985 and headquartered in London, Chesney’s is a producer, distributor and retailer of fireplaces and wood-burning stoves. The business also provides bespoke items to the hotel industry and distributes its products to 200 independent retailers across Europe, the Middle East and the US.

The business has a headcount of 150 across its showrooms and manufacturing facilities in the UK, US, China, Portugal and Turkey.

People
Business Growth Fund – Alistair Brew, Tom McDonnell (investors).
Chesney’s – Paul Chesney (founder, CEO).

Advisers
Equity – Cooley (legal); David Gilbert (financial due diligence); Grant Thornton (tax).
Company – Irwin Mitchell (legal).

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• Topics
• Expansion
• UK / Ireland
• Consumer
• United Kingdom
• BGF (Business Growth Fund)