August Equity sells Rixonway for £34m

Amy King
10 December 2014

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August Equity has sold Swedish kitchen manufacturer Rixonway Kitchens to Nobia for a total consideration of ТЃ34m.

Nobia has made an initial payment of £31m, with a variable cash consideration of up to £3m payable upon achievement of certain business performance metrics.

The acquisition extends Nobia's reach in the UK kitchens market.

The company was the last to be realised from August's first fund. The 11 investments in August Equity Partners I, a 2003 vintage fund, have made an overall return of 2.4x investment cost.

Previous funding
August backed the management buyout of Rixonway Kitchens in 2006, via the newco Rollfold Group. Singer & Friedlander provided a senior debt package to support the deal. The firm acquired Rixonway via an auction process run by Rothschild and bought its stake in the company from vendor Curtis Wright, according to unquote" data.

In February this year, the company completed a refinancing of £15m. BDO Debt Advisory advised Rixonway on the refinancing, which was supported by PNC Bank.

Company
Founded in 1978 and based in Dewsbury, Rixonway supplies kitchens primarily to UK construction companies that are active in social housing. The business has a factory in Dewsbury.

Net sales reached £40m with an EBIT margin of around 10% this financial year. The business employs 480 members of staff.

People
Paul Rose is the CEO of Rixonway. August managing partner Philip Rattle led the firm's initial investment in the company and sits on its board as a non-executive director, according to unquote" data.