NorthEdge sells Belfield Group's Usleep

The purchase price and Vita's committed follow-on investment will amount to around EUR 100m.

Following the sale, Usleep will continue to be led by Paul Glynn, mattress divisional managing director, and Usleep managing director Tina Tombs.

NorthEdge acquired a majority stake in Belfield in July 2016, with Clydesdale and Yorkshire Bank providing debt to back the MBO. The GP invested via its GBP 300m NorthEdge Fund II vehicle, which invests in UK-based lower-mid-market businesses with enterprise values of GBP 10m-100m, with a GBP 20m-75m sweet spot. Equity tickets from the fund are generally in the EUR 5m-35m range.

The 2016-vintage fund's four exits to date have generated an average return of more than 3.5x.

NorthEdge said in a statement that Usleep's EBITDA has doubled during the investment period following investment in its manufacturing facilities.

Remaining brands within the Belfield group include its Leisure and Home divisions, as well as upholstery producer Westbridge. The company generated revenues of GBP 132m and EBITDA of almost GBP 5m at the time of its acquisition by NorthEdge; Belfield posted revenues of GBP 189m ion 2019, according to its latest available financial statements.

SVP acquired Manchester-based Vita Group in 2018 in an SBO from TPG Capital, investing via its third and fourth funds, according to Unquote Data. The company has made three acquisitions to date in 2021 and the purchase of Usleep is intended to support the growth of its bedding business.

Company
Usleep produces foam, spring and hybrid mattresses for both mattress retailers and "bed in the box" mattress brands such as Simba. The company has production sites in Ashton-under-Lyne and Castle Donnington.

People
NorthEdge – Tom Rowley (director, head of Yorkshire and North East); Grant Berry (managing partner, co-founder); Nicola McQuaid (director).
Usleep – Paul Glynn, Tina Tombs (managing directors).
Vita Group – Ian Robb (CEO); Gilbert Davids (managing director, comfort division).
Belfield Group – Gary Lasham (CEO).
Strategic Value Partners – Victor Khosla (founder, chief investment officer).

Advisers
Vendor –Deloitte (corporate finance); Addleshaw Goddard (legal); PwC (financial due diligence); KPMG (tax).
Acquirer – DLA Piper (legal); PwC (financial due diligence, tax); RSK (environmental due diligence); Lockton (insurance due diligence).

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• Topics
• Portfolio management
• Exits
• UK / Ireland
• Consumer
• United Kingdom
• Partial sale
• Build-up
• NorthEdge Capital