Advent sells down 14% stake in DFS for £90m

Advent sold 30 million ordinary shares priced at 300 pence apiece, up from 295 pence when the GP sold down a 15% stake in October.

Following completion of the sale, Advent will retain a 24% stake in the company.

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 IPO followed a recapitalisation of DFS in March 2013, which saw it issue a £310m bond that enabled it to refinance its outstanding 9.75% bond due in 2016.

Jefferies International and UBS acted as bookrunners and placment agents in the latest 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 manufacturing and sale of household sofas. The firm has 100 stores across the UK and Ireland, and employs more than 3,500 people.

The company generated a turnover of £706.1m and adjusted EBITDA of £89.2m in the financial year ending August 2015, up 7.5% and 8.4% respectively on the previous year's results.

People
DFS – Ian Filby (CEO).

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• Exits
• UK / Ireland
• Consumer
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• Advent International
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