NVM backs Buoyant MBO

Kim Richters
11 July 2013

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NVM Private Equity has supported the management buyout of British upholstering manufacturer Buoyant Holding with a ТЃ7m equity ticket.

The investment was made via the Northern VCT, Northern 2 VCT and Northern 3 VCT vehicles. Joel Rosenblatt, who joined Buoyant as new executive chairman, initiated the buyout.

The capital could potentially be used to increase export revenues and acquisition efforts. The segment of the UK furniture market that Buoyant operates in is valued at £4bn, according to the GP. Buoyant increased its product sales by 70% over the last three years.

Debt funding for the transaction was provided by PNC Business Credit.

NVM typically invests between £2-10m per deal. NVM's latest investment was the backing of the £5m MBO of Kirton, a manufacturer of specialist seating products for disabled and elderly people, in June. In the same month, NVM invested £3m in the £4.4m MBO of Cbio, an environment-friendly waste treatment business.

Company
Lancashire-based Buoyant supplies upholstered furniture to national, independent and online retailers and manufactures 95% of its products from sourced raw materials. The business was founded in 1909 and employs 630 staff.

People
Andy Leach is an investment director at NVM. Mauro Biagioni is also an investment director at NVM. Mike Aramayo is the managing director of Buoyant and a board member of the British Furniture Manufacturers Association. George Smith is the production director at Buoyant. Glen Ainsworth is the developing director at Buoyant. Hans Jansen is the commercial director and Stuart Bracewell is the finance director at Buoyant.

Advisers
Equity - DWF, Jonathan Robinson, Nicola Frost, Helen Mather (Legal);
Altium Capital, Stuart Lees, Liam May (Corporate finance); Grant Thornton, Jonathan Steed (Financial due diligence); Neil Sengupta, Fletcher Adamowicz (Tax); Armstrong Transaction Services, Tom Raymond (Commercial due diligence); Aon UK, John Donald (Insurance due diligence); Diligencia, Tim Worrall (Management due diligence).
Vendors - Eversheds, Stephen Hill, Lee Harris (Legal); Catalyst Corporate Finance, Keith Pickering, James Guglia, Chris Wright (Corporate finance).
Management - Walker Morris, John Hamer, Jo Stephenson, Ed Ainscoe (Legal).
Debt - Squire Sanders, Claire Shepherd (Legal).