Advent sells remaining 12.1% stake in DFS for £58.5m

The placement values shares at 228 pence apiece, down from the 240 pence price at which the GP sold a similar sized stake in November 2016, and the 300 pence value at which it sold a 14% stake in April that year.

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 flotation followed a recapitalisation of the business in March 2013, which saw it issue a £310m bond enabling 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. The following April, the GP sold a 14% stake for £90m, before divesting half of its remaining 24% stake for £61.7m seven months later.

According to unquote" data, the firm was invested in DFS via its sixth fund, a 2007-vintage vehicle that closed on its €6.6bn hard-cap in April 2008.

Advent declined to comment on the returns generated from its investment in DFS. Berenberg acted as sole bookrunner and placment agent in relation to the offering.

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, according to publicly available records.

People
DFS Furniture – Ian Filby (CEO).

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