NVM Private Equity has continued to show interest in the furniture manufacturing market by backing another management buy-out in the space.
The management team of Buoyant Holdings are leading a buy-out of the business with help from NVM Private Equity.
The £7 million management buy-out is set to allow the business to continue with its export revenue growth as well as target strategic acquisitions.
Lancashire-based Buoyant was founded in 1909 and supplies 20 UK retailers with sofas and chairs. According to a statement, 95 per cent of its products are manufactured at its northern base.
As part of the deal, Joel Rosenblatt has been recruited as new executive chairman – bringing with him experience in the textiles, upholstery and the fast-moving consumer goods sectors.
Mike Aramayo, managing director at Buoyant and lead on the MBO deal, comments, ‘We recognise that it is imperative to stay at the forefront of our industry by continuing to introduce new concepts and designs.
‘Upholstered furniture is moving up the consumer spending priority, so the new funding will help us to develop our products further to meet demand from the UK and overseas.’
The furniture deal is the second for NVM Private Equity in a month, and third MBO in the same period. Back in June, the investor backed a deal involving Kirton Group through a £5.5 million deal. A week before, NVM supported the £3 million buy-out of biological waste treatment company Cleveland Biotech.
More on NVM Private Equity:
- Hairstack Dryers links up with NVM
- Portfolio activity continues for NVM
- Paladin moves to trade ownership
Andy Leach, investment director at NVM Private Equity, says that the Buoyant business has forged a ‘strong reputation’ in its market place resulting in a ‘substantial’ increase in sales [70 per cent over the last three years].
He adds, ‘We are delighted to be backing a century-old British manufacturing business with a strong track record and an ambitious management team.’