MBO at Wall Coverings Specialist Arthouse
A management team has taken control of Rossendale based wall coverings and decoration specialists Arthouse Limited following an MBO.
L to R: Robin Bancroft, Gillian Todd, Drew Whitelaw, Natalie Eastham, Simon Hewitson (BTG McInnes), Anita Kenyon, Shawn Bone (BTG McInnes)
The seven year-old company has been acquired by managing director Anita Kenyon and fellow directors Gillian Todd, Robin Bancroft and Drew Whitelaw for an undisclosed sum with the backing of Nordic investment bank Glitnir. Natalie Eastham from Glitnir Total Capital also joins the board as a non-executive director.
The £16 million turnover company founded by exiting owners Malcolm Vaughan and Tim Wilman has demonstrated high growth since its inception in 2000 to become the second largest supplier of wall coverings to the UK DIY multiples.
This is a fantastic opportunity for us to grow Arthouse and move forward from a fantastic platform as one of the UK’s leading suppliers of wall coverings,” commented Anita Kenyon.
We will keep the innovative approach that has enabled our rapid growth, but with the backing of Glitnir we now have a chance to forward with additional resource and a team that knows the sector inside out.”
Arthouse will continue to build upon its key strengths of design and providing a premium service to its retailer customer base. Growth is expected to come from both its primary wall covering products, as well as its additional products, with further potential from new product ranges.
Natalie Eastham, executive director of Glitnir Total Capital said, "Glitnir is very excited about its investment in this fast-growing company. The design-house business model has proved very successful and we believe this management team will continue to deliver opportunities to further strengthen the Arthouse business."
The deal was structured by BTG McInnes Corporate Finance and sees the management team, that have each been with the business for more than four years, take a majority equity stake in the business from founders Vaughan and Wilman, who started the firm seven years ago.
Shawn Bone, partner at BTG McInnes said: "Arthouse is a great business that has delivered significant growth and the additional resources offered by this investment give the company a huge boost. The management team has been running the business alongside the founders for a number of years, and they have a deep understanding of what has given the company its edge. Glitnir Total Capital offered a flexible and competitive one-stop-financing package which enables the management team to take a majority stake in the business.”
Addleshaw Goddard provided legal support, and BDO Leeds conducted financial due diligence for the bank. Other advisors included Deloitte, Dickinson Dees, Grant Thornton, MBD, Ward Hadaway and Marsh.
