Bed manufacturer Airsprung has acquired the upholstered furnishings manufacturer Collins & Hayes Furniture for £2.3 million.
Bed manufacturer Airsprung has acquired the upholstered furnishings manufacturer Collins & Hayes Furniture for £2.3 million.
Collins & Hayes managing director Martin Huggins and finance director David Backler will remain with the business along with 158 employees.
The acquisition comprises an initial sum of £2.3 million, followed by a deferred performance-related payment of up to £250,000, and is to be funded by a four-year revolving credit facility of £2.5 million provided by the Swedish bank Svenska Handelsbanken.
Wiltshire-based Airsprung produces beds and mattresses, trading under its brands Gainsborough Beds, Hush and Airsprung Beds. The AIM-listed company also operates in the upholstered furniture market through its Lancashire-based subsidiary, Cavendish Upholstery.
Collins & Hayes produces made-to-order upholstered furniture, which is sold through department stores and independent retailers including Harrods and Selfridges. In the year to April 2010, the East Sussex-based company declared a pre-tax profit of £387,400 on a turnover of £9.8 million.
